It was some time in 2011 when the opinionated market research analyst Mr. Steve Sjuggerud commented in one of his posts that the Japanese Stocks were only set to go higher. Interestingly, the commerce pundits and policymakers in Japan thought that Japan was receding into deflation; another euphemism for recess in trading. Japanese strategists sought to raise inflation to save the situation. Well, readers of Stansberry Research may remember that so far, since Steve’s call, the stocks in Japan are over 20% higher.
Testimonies that Surprised the Markets
The Bank of Japan, which sought to increase inflation at all costs when Mr. Sjuggerud made his comments regarding the stock markets in Japan, testified that it stopped the massive stimulus program for once. As things stand, both policymakers in Japan and Stansberry analyst Mr. Steve Sjuggerud have projected that the prices hit 2% by the time 2019 comes around. So, one wonders whether it isn’t time to hit the road, anyway.
The President of the Bank of Japan has been under tremendous pressure owing to the trends, including the raising of rates by the Federal Reserve and the European Central Bank contemplating normalization. Mr. Kuroda is under immense pressure to announce when he will bite the bullet and follow suit. At the same time, it is worth mentioning that the mentioning of the need to plan an exit by 2019 is a market-shaping statement. While the President of the Bank of Japan did not say that BoJ would terminate its stimulus then, the market does not give a hoot. The Yen went higher. The Nikkei 225 Index, on the other hand, sank ever lower.
The Connection of the Events with the thesis presented by Mr. Sjuggerud
If you are wondering whether the stocks boom is finally busting, Mr. Sjeggerud says it isn’t. According to the Stansberry Research analyst, Mr. Kuroda does not intend to let inflation hit 2%. He says he wants to overshoot the 2% mark. He confirmed it in his latest statements. According to Stansberry Research analyst, however, overshooting 2% is a farfetched idea, at least not by 2019. Steve says that the one-way bet for Japanese stocks still holds.
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