Stansberry Research, a subscription based publisher on finances, has recently published an article about the Japanese stock market. This article has predicted a possible trade war between the US and Japan on the horizon. This is primarily due to the Japanese stock market rising in returns, the bank of Japan trying to keep their inflation prices no higher than 2 percent and Trump’s plan to impose tariffs both on steel and aluminum.
According to Stansberry, Trump has stated desires to put up a 25 percent tariff on steel and a 10 percent tariff on aluminum to be applied boldly and without quotas. While this kind of talk and action is nothing new of the President, this could have implications that could disrupt relations with Japan. The plan however has been opposed by republicans in congress and even some of the members of the President’s administration. This would include Trump’s current top Economic Advisor who has been one of the strongest opposers of the tariffs. With all of this in mind, the tariffs do not likely seem to be happening but only time can truly tell.
On the contrast, Stansberry claims that Japan currently has been under trouble with it’s economy in regards to the stock market. Back in 2016, Japan was sliding back into deflation. To combat the deflation, the Bank of Japan (BoJ) has been driving inflation higher at any cost possible. The Governor of the Bank however has insisted to not let prices reach no higher than 2 percent and is likely considering ending the stimulus in control of this. As of now, the Japanese yen has surged even higher, benchmark Nikkei 225 Index on the other hand, plunged 3 percent.
Stansberry is a website that gives financial advice and software service. They have helped millions of investors internationally. Their business model follows the principles of delivery desirable information for both investors and their families, and sharing various opinions (https://www.indeed.com/cmp/Stansberry-Research).
To conclude, based on what information Stansberry has given us, it is best investors prepare for a trade war and the consequences it might bring.