Record-Breaking Spree, But Don’t Hold Your Breath

Japan’s Nikkei 225 is on a tear, crossing 56,000, then 57,000 and nearing 58,000. It’s all thanks to the so-called ‘Takaichi trade’, which is fueling this rally.

The ‘Takaichi Trade’: What’s Behind It?

This supposed magic formula is named after a Japanese politician, and it’s not entirely clear what’s driving its success. What is clear, though, is that this surge won’t last forever. It’s fragile, and it won’t take much to send it crashing back down to earth. So, investors, don’t get too cocky just yet.

What’s Next?

If history’s any indicator, this won’t end well. Japan’s stock market’s got a habit of spiking, then plummeting. So, buckle up, because this rollercoaster’s far from over.