Professional Documents
Culture Documents
Brent M. Eastwood
Founder @GovBrain
Oct 16 4 min read
https://medium.com/@beastwood1919/can-japanese-stock-rally-carry-through-japans-general-election-900b0c3c6796 1/5
11/16/2017 Can Japanese Stock Rally Carry Through Japans General Election?
Typically, Prime Minister Abes main opposition has been the Japanese
Democratic Party. But many members of the Democratic Party are now
running in di erent parties underneath the banner of Koikes Party of
Hope or the more leftist Constitutional Democratic Party led by Yukio
Edano. This has served to divide the opposition vote and give Abe the
advantage before voting begins this Sunday.
https://medium.com/@beastwood1919/can-japanese-stock-rally-carry-through-japans-general-election-900b0c3c6796 2/5
11/16/2017 Can Japanese Stock Rally Carry Through Japans General Election?
reticence may have confused voters and cost her support from
independents. Koike was also seen by some voters as not having clear
command of the issues and not giving details on her campaign
promises.
A big win for Abe should also be good for investors in Japanese
securities. GovBrain Warning, our app that can predict nancial crises,
bubbles, and geopolitical risk, sees strength in Japanese stocks and the
yen. GovBrain Warning is based on an aggregation of all our security
price predictions and sentiment analysis from the last 3.5 years. Here is
our year-to-date ratings for Japan. These ratings are based on 570
individual security price predictions this year.
Japan sentiment has been bullish across the board this year. The Nikkei
225 has risen 10.7% year-to-date and EWJ, the iShares MSCI Japan
ETF, is up 17.1% over the year.
However, GovBrains bullish sentiment for Japan has cooled over the
last 30 days. This is based on 46 individual security price predictions.
https://medium.com/@beastwood1919/can-japanese-stock-rally-carry-through-japans-general-election-900b0c3c6796 3/5
11/16/2017 Can Japanese Stock Rally Carry Through Japans General Election?
While the Liberal Democratic Party has remained strong and has
outperformed the Party of Hope in the last two weeks, GovBrain
Warning is still highly bullish on Japanese equities during that time.
The Nikkei has been up 10 straight days and just nished at its highest
level since 1996. Meanwhile, the yen has held steady against the U.S.
dollar. GovBrain warns that Japanese bonds will be extremely bearish,
even though the Japan 10-year Treasury has rallied since September 8.
https://medium.com/@beastwood1919/can-japanese-stock-rally-carry-through-japans-general-election-900b0c3c6796 4/5