After Japan’s stock market soared 80 percent over the course of six months, it hit a roadblock. The rapid climb of the Nikkei 225 index, the market’s benchmark, came to an abrupt end on May 22. Over the next three weeks, the market plunged 20 percent — the definition of a bear market.
However, since June 13, the day it entered bear territory, the Nikkei has bounced back 13 percent. The quick turnaround has led many to ask if this market correction is a buying opportunity, or merely a head fake as the Japanese market returns to the doldrums it’s been sitting in for the past two decades.