In a drive to keep inflation rising, Bank of Japan slashed interest rates and ramped up stimulus efforts in 2016. Investors have been riding the tailwind over the past two years, as Japanese stocks have risen a modest 20%. Looking to the future, the BoJ now believes the goal to move inflation beyond its long-term target of 2% will be reached during Fiscal Year 2019. On Friday, Bank of Japan Governor Haruhiko Kuroda indicated the bank’s impressive stimulus program may soon be coming to an end.
Stansberry Research stands by original recommendations made in 2016 to invest in Japanese stocks, as the boom doesn’t appear to be slowing soon. According to the expert analysts at Stansberry research, nothing has been made clear about when the Bank of Japan will be exiting the stimulus program, and investors shouldn’t make any immediate decision to sell until the situation becomes clearer. In fact, Stansberry experts advise it is still a good time to buy.
Last week, US President Donald Trump continued to make US financial markets nervous as he revealed plans to impose a tariff for steel and aluminum imports on US trading partners. Analysts at Stansberry Research report that the most recent plans outlined by Trump could have a negative impact on the US economy. The impact will be two-fold, simultaneously driving up prices of steel and aluminum, while causing reactionary tariffs to be imposed on the US by foreign trading partners.
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