Someone asked, Japan was already falling before the rate hike, so once the rate hike is announced, will it stop falling?

Honestly, no. It might even fall more sharply.

Just look at the previous two instances. First, the rate hike news comes out, and the market starts to decline gradually; then, when Japan actually announces the rate hike, there's a sudden sharp drop, often plunging straight down within a few days, feeling like a free fall from high altitude.

Why does this happen? The logic is actually straightforward: once the rate hike is officially implemented, Japanese funds begin to withdraw, shifting their money back domestically to buy Japanese assets. Foreign capital inflows decrease, the market loses support, and naturally, it can't hold up, leading to a crash.

But there's an interesting twist—this kind of sharp decline often becomes an opportunity for many to buy the dip. History always repeats itself; the key is whether you can understand the rhythm.