Catch-22 and Japan’s response

Thursday, August 29th, 2019   Categories: , , ,

US Equities are vulnerable almost whatever happens

If investors want to prevent the negative effects that a trade war between the US and China could have on US Equities, they may be forced to sell US Equities. This may be one of the few ways they have of getting President Trump’s attention. Our models are at – or very close to – maximum underweight in equities. If there is a storm coming, Japan may have an important policy tool to mitigate some of the damage.