For some time now, there has been heavy reliance on the Japan stock exchange that has shown great power and strong support from the Bank of Japan, which is currently headed by the governor Haruhiko Kuroda. According to Stansberry Research, Haruhiko has imposed some financial stimulus from the onset of the year 2016 that saw great cuts in the interest rates as well as increase in focus on the quantitative easing program. These are all in efforts to meet its economic plan of inflation rate targeting of 2% per annum in the long run.
This however does not seem to be going beyond 2019 with a negative perception deemed to occur that will adversely affect the stock market in Japan if the inflation targeting plans proceed. Therefore, Stansberry Research has shown the gradual exiting from the fiscal planning on inflation targeting by Haruhiko may be suitable as new ways are designed to meet the set targets.
On the other side, fears are mounting over a possible trade war scenario emerging in the U.S. According to Stansberry Research, there has been imposed tariffs on all trade partners of the U.S. for steel and aluminum. This trade war will see a reciprocated move by the European Union that is planning a retaliatory strategy. Should the tariffs be imposed on them, then they will impose tariffs on U.S. consumer goods getting into the European Union. This is the same case for China, a major investor in the U.S. treasury according to Stansberry Research, which will impose tariffs as well as stop its purchase of treasury bills. The taste of the trade war is very imminent.
Stansberry Research LLC is a subscription-based firm that publishes on financial research. It provides market trading opportunities as well as recommendations for the individuals managing their portfolios.
Stansberry Research was founded in the year 1999 and it was previously known as Stansberry & Associates Investment Research. Its founder, Frank Porter Stansberry, edits work as well as writes opinion pieces majoring on economic and financially inclined discussions. Steve Sjuggerud is also another analyst in Stansberry Research and he is the founder and editor of True Wealth publication that was launched in 2001.