As the japanese love to do, investors in internet stocks in Japan took a bath today. The whole market saw an almost three percent drop on only marginally important news.
Horiemon (Horie Takafumi) charisma-free talento and leader of the livedoor companies looks to have choked. His fanatical zeal to pump his companies stock price at all costs has brought him right up to the edge of the law time and again, drawing plenty of detractors along the way, but not slowing livedoor's market growth. Well, now the cops are all over his shit, and whether he's guilty or not, investors are spooked. Trading on livedoor is frozen, but even largely unrelated internet stocks like softbank and rakuten are down as much as 10%.
The newsmakers are saying that it has to do with investors faith in the new economy companies being shaken, and I believe it. But I also think that the prevailing trend will not be destroyed by this one piece of information. It may take a few weeks, but before long the nikkei will recover it all back and then some.
I'm just glad it happened before I managed to get my money into the market. That's a little later this week.
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