Potential Stock Market Bubble in Japan?
** Sometimes, I can't help but think that Japan might be experiencing a stock market bubble. Since the NISA (Nippon Individual Savings Account) system was revamped, even people who had no interest in investing before have started buying stocks. NISA allows individuals to invest without paying taxes under certain conditions. Currently, stocks and investment trusts including stocks are covered. For existing investors, this system is a boon as they no longer have to pay around 20% tax on profits. I think the promotion was very well done, leading many people to start investing using the NISA system. People who previously only saved their money in bank accounts have begun investing in stocks. This isn't a bad thing—in fact, it's quite healthy in times of inflation. But, as with anything, too much is never good. I don't know if there's a similar saying abroad, but in Japan, there's a market proverb that goes, "When housewives start buying stocks, the market will...