Japan’s stockmarket is not a big part of most of the portfolios which we recommend, but, at 10-12%, a bigger part in some than the UK. Japanese shares have yo-yo’d in recent months, up or down by as much as 20% in a day, and eventually settled at a bit down but not too much. The reason, their government had kept interest rates artificially low and raised (yes, raised!) them to 0.25% after many years. And here’s the problem, in a global economy, trying to be clever and bucking the norm catches up with you. The other, less influential country which did the same is Turkey. The result there was 1930s Germany-style hyper-inflation and misery for many at the wrong end of it. Like it or not, it’s a global world (I know, not my phrase) economically, and daring to be different is often proven to be the road to ruin.
“Stocks surge and yields stabilise as Trump tariffs paused”
“The reason our stock market is so successful is because of me. I’ve always been great with money, I’ve always been great with jobs, that’s what I do”, said the man himself about (of course) himself. And, yes, one tweet, if we’re still allowed to use that old Woke term, on Truth Social can indeed send markets firmly up as well as down.
