Many people ask a question:

Since the market has already been falling before Japan's interest rate hike, will it not fall once the hike is officially announced?

The answer is very simple:

Not only will it not stop falling, but it is often the most dangerous period.

Looking back at Japan's last two interest rate hike cycles, the market's rhythm is almost identical:

In the expectation phase, news gradually ferments, and prices start to decline in advance;

At the moment of the official announcement, the risks do not end but are often released in a concentrated manner;

Then, within one to a few days, a sharp drop or plunge is common, typically a "needle-in-the-haystack" market.

The reason is not complicated.

After the interest rate hike is truly implemented, domestic funds in Japan begin to flow back,

Liquidity in external markets continues to be drained,

And prices that were originally supported by funds naturally cannot hold up.

So what you often see is not "bad news fully priced in,"

But rather the moment when the liquidity turning point truly arrives.

However, it is important to note that—

This decline does not necessarily mean the end of the trend,

But rather is likely a phase low point after the emotions and liquidity have cleared simultaneously.

In other words:

For those chasing highs, this is a risk;

For prepared funds that can wait, this is often an opportunity.