Thursday, May 31, 2018

Why is Japanese financial literacy low?

While watching TV in the middle of the night, Mr. Takashi Sugimura, famous for earning 26 million yen in one year, appeared on the program and was talking about stock investment.

However, despite lamenting the merit of stock investment, other entertainers dismiss with laughing that "stocks are gambling! lol". So the topic of the stock is over.

The Japanese are famous for hating investment. As you can see from being the world's largest insurance loving country, Japanese people do not like to take risks excessively. There are many people who cause allergy only by listening to the term "investment" and it seems that speculation and investment are completely misunderstood.

Among developed countries, there is no country with lower financial literacy than in Japan. That is because it will become an adult without taking money lessons at school or other educational institution. Although becoming interested in money for the first time becoming a social worker, I do not know what to do with money, while encouraging savings, on the other hand, spending money.

If I do not teach at school, should I master my knowledge in my parents and my daily life? In the first place, the parent generation is savings and insurance love generation, and wisdom to operate money etc. does not have 1 mm. In addition, there are many people who think seriously that "money making is bad", and there are many citizens who are braintered by the religion "money is dirty and evil".

There are many such ideas in Japan, so in daily life there is a reality that "story of money is taboo". Especially, as with parents, when talking with friends etc, the topic about money is taboo more than talk of politics.

In other words, because Japanese have few opportunities to talk money with school, parents, friends, etc., no matter how old you are, you can not acquire financial literacy.

According to a survey by the Central Bureau of Financial Public Relations, the proportion of those who answered "confident in financial knowledge" was only 13% for Japanese, compared with 76% for America. In the United States, financial education is done as usual, so the high-level figures shown are shown, but you can see that Japanese who do not have money and contacts are too numerically too numerical.

If you reverse the back, Japanese people are definitely smart people, so if you properly incorporate "finance" into your educational program, it is possible to knock out numbers beyond Americans. The reason for the low financial literacy of Japanese people is that there is no education (because they do not know) literacy is lacking, and there are also places that can not be totally attributed to the people.

However, because there is no thing without it, if you want Japanese people to acquire financial literacy as a matter of reality, you have to study by yourself.

In Japan where the deposit balance finally exceeded 1000 trillion yen, despite the unusual negative interest rate policy of the Bank of Japan, people are struggling with saving money. The problem of No. 1 is that many Japanese think that what the Japanese mean is that the government aims "the inflationary society in which the value of money diminishes" through the BOJ's quantitative easing? It is not noticed at all.

Those who study and do not do, the gap between rich and poor will continue to expand.

Tuesday, May 29, 2018

The credibility of the rating company is the same level as the media at large.

It may be surprising.

In the world, there are jobs that can earn huge profits simply by doing 'unilateral evaluation by dogmas and prejudice'. Speaking of the financial world, it is a rating company.

A rating company is a company that analyzes the probability of default on shares and bonds issued by a country or company and ranks it with simple symbols such as alphabets. Three companies are called global rating agencies, S & P Global, Moody's, Fitch Ratings.

These three companies, commonly known as "Big Three", are said to have a share of over 95% in the American market, and only three companies dominate the rating market. The backside, the power of these three companies is overwhelming, and the country and the company can not resist them.

In the first place, to what extent is the credibility of the rating company?

Actually, it is true that there is also a voice that the rating is not terrible, there is no objectivity, it is not worthy of credit.

According to the Business Journal, when I investigated executives of S & P Global about "how rating companies are rating," they did not read the budget books at all and ranked them by rough general numbers only I revealed the fact that it was.

This is equivalent to judging the credibility of a company by only surrounding information without looking at the financial statements. Closingly, even the information of a rating agency at the big three level is that there is no great difference from the level at which the press judges things with personal impressions and reports that there is none.

In the past, the work of many valued rating companies took a criticism of the public. For example, Enron and WorldCom, which were on the verge of bankruptcy, were rated as investment grade, and high ratings were given to infamous subprime loans.

Investors blinded the rating company and bought financial instruments such as subprime. After all, this has caused a Financial crisis called killing of capitalism in capitalism, but the credibility of the rating is that level after all.

Nonetheless, financial instruments that are not rated by rating agencies as a matter of fact are never bought by investors. Investors around the world emphasize their rating evaluation even after the credibility of the credit rating company has been revealed by the Lehman shock, and the rating company continues to make a huge profit from the past to the present.

For that reason, it is a fact that ratings by rating companies are regarded as an important indicator when investing.

Well, there are only two companies currently granted AAA's highest rating rating by S & P Global. Johnson · End · Johnson (JNJ) and Microsoft (MSFT).

Then, are these two companies not worthy of AAA evaluation? There is not such a thing at all when asked, financial and business are the highest level in the world.

It can be said that at least Johnson & Johnson (JNJ) and Microsoft (MSFT) are excellent financial products to be invested without fail regardless of ratings.

Friday, May 25, 2018

S & P 500 ETF with 1 million yen reached 5.1 billion yen.

At the general shareholders' meeting of Berkshire Hathaway held on May 5 this year, Warren Buffett told shareholders "How exciting is the S & P 500 ETF?"

For example, if you invested $ 10,000 (1 million yen) on the assumption that S & P 500 ETF was in 1942, it revealed that it is worth 51 million dollars (5.1 billion yen) now.

One million yen is 5.1 billion yen.

Believe it or not, it means that assets increased by 5,100 times.

If the United States continues to maintain global economic and military superiority in the future, even in the modern era that entered the 21st century, the possibility of being reproduced is high.

Therefore, in order for all investors to succeed, it is necessary to continue to buy the S & P 500 EETF which can be diversified and invested in the U.S. superbest company.

On the other hand, Buffett is negative for investing in gold called safety assets.

Compared to the S & P 500 ETF's 5100 times dramatic increase in assets, when investing $ 10,000 (1 million yen) in gold, its value was only 400 thousand dollars (40 million yen).

In addition, Buffett speaks.

Suppose that a company has increased its factory and reinvested in a new invention, you have stored 300 ounces of money in a safe deposit box.

You can do whatever you want to do, watch, gently stroke, or do it with money.

However, it does not produce anything.

I have never created something.

And what is left in your hand now?

Just like March 1942, there are only 300 ounces of gold.

It's worth about $ 400,000.

In other words, as it is a capitalist society, as the economy grows permanently, since stocks are the investment products with the most return, gold and others can be said "no way".

Well, in the world, it is said that "modern gold is a virtual currency", but if you borrow Buffett 's words, the virtual currency as well as gold' s not creating anything, creating something, etc. It can be defined as "no."

If you want to make a profit with low risk, the optimal solution for investment is obviously a stock investment, especially S & P 500 ETF should be chosen.