Japanese Reflection (4 of 4)

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I’ve been pleasantly surprised that some of my most popular posts are excerpts from the only history book I ever wrote, Panic, Prosperity, and Progress. Over this holiday weekend, I’ll be sharing, over the course of four days, the chapter dedicated to the inflation and bursting of the Japanese bubble of the 1980s. I think you’ll find some interesting parallels with China. You can read the first part here, part two is here, and part three is here.

Equities in Japan peaked on the last trading day of the year in 1989. The Nikkei ended the year with a crescendo, and the majority of market observers agreed that the market was not overvalued. There was no reason they should not have expected 1990 to bring in more profits, since the trend has been so strong, so persistent, and so long-lived.

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