The current policy is actually quite similar to that of Japan. After a long period of decline, there will always be a rebound when positive sentiment comes up, and the shorts cannot be too arrogant.
Let’s talk about Japan’s zero interest rate policy. It started in February 1999. At that time, in order to cope with the economic recession, the Bank of Japan lowered the interest rate to zero, becoming the world’s first central bank to enter the “zero interest rate” era. Since then, Japan’s interest rate has remained at a very low level for a long time.
After the interest rate was cut to 0, the market rebounded very strongly. But after the rebound, it continued to bottom out + bottom oscillation, and this process lasted nearly 10 years.
Later, the Bank of Japan began to purchase domestic ETFs on October 28, 2010. The initial purchase scale was small, but as time went on, the purchase scale gradually increased. By 2013, the Bank of Japan abolished the upper limit of the holding balance and instead set an annual purchase limit, and gradually increased the limit.
Then, in 2016, the interest rate reached negative interest rates. I remember that at that time, money deposited in the bank would be deducted a little bit. Just like when you deposit money in the bank, there is no interest, and a few cents, a few yuan, or tens of yuan will be deducted.
The last upward trend started in 2013 and has continued to 2024, finally returning to the peak in 1990.
Few bloggers of A-shares have experienced the torture of a very long downturn.
After decades of rapid development, the decline of the housing market and A-shares for more than three years is nothing...
So will we be better than Japan, or about the same, or worse than Japan?