Below is a comment written by a personal investor, "Sanasae", a Fisco Social Reporter (blog: 'Sanasae's Beautiful Investment Life'). At Fisco, we work to collaborate with individuals who actively disseminate information to provide a greater variety of information to investors.

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Written on October 14, 2024 at 7:00 pm

Everyone, good morning, good afternoon, and good evening. Japanese stocks are finally about to reach 0.04 million yen again thanks to the strength of US stocks (actually reached on the 15th). Looking back at the major crash from August 5, which began with the 'Ueda Shock,' and the negative surprise of the election for the Prime Minister, known as the 'Ishiba Shock'... This year has been really volatile and challenging in the market, yet here I am, resilient individual investor, Sana Sae, facing each day.

This is the second year of the serialized article written by a female investor in her forties who won second place in the Evening Fuji-sponsored Stock 1GP Grand Champion Tournament (in the 21st year)... This is already the 90th installment. Along with the main column, this time we will introduce some of the recent trending stocks.

With the September US employment statistics released on October 4 exceeding market expectations, expectations for a soft landing have risen again, and the NY Dow Jones has been exceeding its all-time high for consecutive days... US stocks seem to be in great shape.

However, the situation for the Nikkei Stock Average, which should be guided by the NY Dow Jones, doesn't seem to be the same. That's because... the Bank of Japan Governor Ueda, who triggered the 'Ueda Shock,' with his hawkish stance on interest rate hikes causing the yen to appreciate, which is a factor suppressing stock prices. There may also be concerns about the upcoming Lower House election... but in reality, it may not be a big deal. Certainly, the LDP is facing issues like under-the-table payments to its members, and it's widely expected that the party will lose a significant number of seats. Even if they fail to secure a majority of seats through the current ruling coalition with 233 seats, it is anticipated that they might enter into a coalition government with Nippon Ishin no Kai, so I believe that there won't be a major political upheaval, and this election may not have a significant impact on stock prices. (There may be a resignation by the current Prime Minister... if that happens, the next Prime Minister might be... mumbling mumbling mumbling... <※omission>).

Therefore, in the short term, if there are no major external environmental changes such as political unrest overseas or worsening Middle East situation, it seems that the Nikkei Stock Average will remain firm even if the upside becomes slightly heavy. In that case, you may want to aim for theme stocks and individual stocks that are drawing a solid upward chart to gain some capital gains. This time, we will introduce stocks focusing on such themes.

First, let's pick up Trend Micro <4704>, FFRI Security <3692>, and Soliton Systems <3040>, which are cybersecurity related companies that were speculated as a policy of Member Sanae Takaichi in the recent Lower House election. Although these were temporarily sold off due to Mr. Takaichi's defeat, Prime Minister Ishiba, who became the winner, emphasized the importance of cybersecurity in his subsequent policy speech at the National Diet, reaffirming the strength of it as a national policy. This topic also attracts speculation on datacenter-related discussions that companies around the world are focusing on, so it's something worth monitoring consistently.

Furthermore, the trend of companies handling optical products such as Fujikura <5803> and Kohboku Kogyo <6524>, which are speculated to benefit from the expanding demand for optical fibers and connectors in data centers mentioned earlier, seems to continue. In addition, there are AI-related stocks like Ai Robotics <247A>, which specializes in skincare products and beauty appliances developed using in-house AI, AI CROSS <4476>, with strong performance expectations in SMS services and HR AI analysis services, as well as Avant Group <3836>, which handles developing consolidated accounting software and other management strengthening solutions like data analysis and predictive AI. Considering to buy on dips...

Yes, I would like to introduce more, but that's all for now.

In my recent blog, in addition to the stocks introduced above, I pick up the 'Top 3 Stocks to Watch' every month as 'Sanae's Solo Stock 1GP' and measure their price range every weekend. Of course, there are various topics other than stocks... Please feel free to enjoy it even if you are curious or scared (lol). Well then, have a nice trade.

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Author name: Sanasae

Blog name: 'Sanasae's Beautiful Investment Life'