An investor with ¥300 million in assets has discussed the signs to watch for in a Sanaenomics-driven market. He warns of the risk of a sharp decline in the Nikkei 225 and the potential turning points for policy-driven stocks.
Against the backdrop of the fiscal policies of the Takaichi Sanae (高市早苗) administration, investment in growth sectors such as AI and semiconductors is attracting attention, while some warn that it will become more difficult to determine when to buy stocks. Kanamori Junichi (金盛潤一), known as Lion Jun, is a young business owner aged 33 to 41 who built ¥300 million in assets. He says greater caution is needed when everyone feels confident about buying.
The Nikkei 225 is prone to sharp short-term fluctuations and is sensitive to price movements in AI and semiconductor-related stocks. He believes that some stocks could potentially decline by around 5% to 10%. Over the medium to long term, he expects continuing inflation to push share prices higher.
He explains that the risk of policy-driven stocks lies in changes to the underlying assumptions. If budgets are cut or priority sectors shift, the flow of funds could change, so he points out that the appropriate course of action differs between long-term holding and short-term trading.
He says caution is needed when positive news is reported day after day and the market becomes overheated. When a theme becomes overhyped in the news, it may diverge from the companies’ actual strength and earnings performance. He says verifying corporate value and future growth potential is essential for making sound decisions.