Japan has been worrying about deflation in recent years and has been acting to keep inflation rising. Stansberry Research, which specializes in investment research, has reported that The Bank of Japan increased inflation and raised stock prices by manipulating interest rates and increasing their quantitative easing programs beginning in 2016.
Now, Stansberry Research has gathered data from its independent research which suggests that there may be a change coming. Bank of Japan Governor Haruhiko Kuroda has stated that it may be time to end the bank’s stimulus program. If they do end their stimulus package, it may mean a drop in Japanese stocks. While this may not be an immediate issue, it is important for stock owners to begin to make decisions.
It is not just changes in the Japanese economy which investors must be worried about; the impending trade war the United States is entering is bound to have a huge effect on stocks. Stansberry Research has a team of over two dozen analysts, some of whom are former hedge fund managers as well as many other financial experts. Their experts are very concerned about tariff’s which President Trump is seeking to impose on steel and aluminum. These tariffs would benefit a very few American’s, while the rest of us would bear the cost. Further, United States trading partners are likely to retaliate.
While it may be easy to assume that these tariffs could grow the steel industry back to its glory days, that is unlikely. When a team of researchers that contain experts in technology, short-selling, biotech, macroeconomic analysis, options trading and more, their research can definitely be trusted. Stansberry Research offers just this breadth of research expertise, and it has found that since the U.S. steel industry peaked in 1953, 80% of its jobs have been shed. Despite this, U.S. steel production has only reduced by under half.
There is little doubt that Stansberry Research has found some concerning information. Investors must be aware of even more market volatility, and learn how to make that volatility work in their favor.