The Nikkei-225 has reached an important resistance. It is my belief that the global central banks will continue to print money, so we can expect global equity markets to keep rising for the time being. For this reason I see the Nikkei probably rising to 12,500 resistance before being overwhelmed by inflation concerns. In the short run inflation tends to look good on balance sheets, however eventually it eats into consumer confidence and results in more job losses.For the Japanese market it will be interesting what impact a change in leadership will have on the economy. This is a landmark development for Japan. Historically when Japan has had periods of reform, they have been earthquake-type shifts in policy, so with two senior business figures leading Japan's new party it will be interesting to see the impact of this new team. I watch with interest their forthcoming announcements.
Andrew Sheldon www.sheldonthinks.com
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