Japan Equity Strategy – Golden Week 2024 will be no holiday

BUT IS IT A PERFECT STORM OR A DESERT STORM?

• Golden Week is about to arrive. Although the weather is looking promising, the investors in Japan could be restless.
• A Perfect Storm of risk in equities, threats of FOREX intervention and war in the Middle East loom large over this holiday and investors are positioning portfolios.
• Pause to look at the 1991 Gulf War just in case it is a herd driven Perfect Storm. Echoes from Desert Storm 33 years ago may come to prove strategies wrong.

I have been thinking about the ‘risk off’ last week, or at least the positioning in the markets that would suggest weaker equities, stronger oil, stronger dollar, stronger gold and rising interest rates, and I’m not entirely convinced.

With the current scenario focused on war in the Middle East, in this note I take a quick look into the archives of 1991 and “Desert Storm”. It is entirely possible this war positioning catches everyone out.

I was ill during the Gulf War in 1991, stuck at home with glandular fever. I watched the whole thing more or less live on TV, with advertisements and some MTV. It was a first. Perhaps this is a second.

Happy hunting!

To read this article in full on Patreon click HERE