Don’t be fooled by the new NISA… “Ordinary people should pay off their debts first,” explains an economic journalist.

In these uncertain and unstable times of world affairs and politics, can we “gather information” and “make decisions” on our own?

The “New NISA” system, which will further expand the tax exemption for investment assets, will begin in 2012.

In the long-lasting deflationary economy, it was fine to simply deposit assets without investing them, but as we enter an inflationary era of rising prices, deposits are losing their asset value. Under such circumstances, there is a great deal of talk here and there about encouraging the general public to invest, as if to say, “Don’t miss out on taking advantage of the new NISA.

Professional investors will always be thinking about what investments they should make, regardless of the economy or the investment environment. On the other hand, is now the right time for the average person with limited economic and investment knowledge to invest?

If you are planning to invest over a period of decades, there should be a time when you can calmly assess the situation. For the average person, now may be the right time.

Even if people say that long-term investment is safe, it does not mean that the market will always go up.

“Japanese stock prices fell in the first half of 2012. Japanese stock prices may fall in the first half of 2012 and pick up in the second half.

“Japanese stock prices may fall in the first half of 2012 and pick up in the second half,” said Saisuke Sakai, chief economist at Mizuho Research & Technologies. Some experts believe that it may be a good idea to take a cautious look at the investment environment for the time being.

Hiroko Ogiwara, an economic journalist, has this to say about the shift of funds from savings to investments.

She says, “Investments should be made in a stable environment and in a normal financial market. But now, it is unstable in every way. The new NISA Even if you are told that long-term investments using the new NISA will be safe, the market is not guaranteed to go up steadily.

The stock market is very distorted,” Ms. Ogiwara points out.

Large investors in the Japanese stock market include the Bank of Japan, which purchases a large number of stocks through index-linked exchange traded funds (ETFs) as a method of monetary policy, pension funds (Pension Fund Management Corporation), and foreign investors. The presence of these investors is so large that individual investors are overshadowed in the stock market.

This is where the general public will be called in with the new NISA. The new NISA will bring in the general public. It would be especially sinister if professionals, such as foreign investors, are quick to run away, win and run away, and the general public is left behind.

Mr. Ogiwara wonders if the current world situation and politics have become so uncertain and unstable that “it is not the right situation to invest.

For example, the war in Ukraine has become a quagmire. The conflict between Israel and the Palestinians has led to the Houthis, a rebel group in Yemen in the southern Arabian Peninsula, attacking merchant ships that they consider pro-Israel in the Red Sea, which leads to the Suez Canal, and there are concerns about the impact on international logistics. Turning to Japanese politics, the government’s approval rating is declining and the outlook is becoming increasingly uncertain.

Many ordinary people are in debt rather than investing, and Mr. Ogiwara says, “It is better to pay off debts first. He is particularly concerned about the working-age population, who have housing, education, and other loans.