The Nikkei average hit its lowest point this year. Panasonic external director Harold George May explains the background to this “biggest drop in history.”

Caster Takahiro Inoue:
The Nikkei Stock Average rose extraordinary highs in 2024, reaching a new all-time high.
So there is a sharp decline. Looking at it over a span of 20 to 30 years, that is.

Harold George May:
The keyword here is “panic.” It fell by about 12% on the 5th, and by about 6% on Friday, August 2nd.
There are reports that this has actually worsened the American economy, but the Dow Jones Industrial Average has only fallen 1.5%.

There are many reasons why panic occurs.

One thing I think is that when you trade NISA using the app, you set a certain price. If the price automatically falls below that price, it will automatically sell. I think a lot of people use this setting. I think this was one of the reasons.

And the bad information spreads, creating a snowball effect. But stock prices are something you think about over the very long term. I think that’s still important.
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Harold George May
Professional Manager Born in the Netherlands in 1963
Currently serves as an outside director for Panasonic and Earth Chemical.