May 21, 2019: Consumption tax hike frozen, and the scenario of a snap election on the same day disappears? [From Tomoaki Sugimura's email newsletter]
From the investment email magazine "Sugimura Tomio Investment Salon" by Tomio Sugimura provided by GogoJungle, here is just a small excerpt from what was distributed today.
The Cabinet Office announced on the 20th that the real GDP growth rate for January to March was plus 0.5% quarter-on-quarter. On an annualized basis, it grew 2.1%. This was supported by a reduction in imports. At first it was said that a negative growth was almost certain, and it was seen as a factor that could cast doubt on whether the October consumption tax rate would be raised. In that case, the possibility of a snap election for both houses of the Diet would emerge. The market moved on this scenario. It is really something. Economists’ predictions are not reliable. In any case, the current economy is “good.” This is not a bad thing.
Quoted from 『Sugimura Tomio Investment Salon』（Tomio Sugimura）.
Because GDP growth exceeded expectations, there is also the possibility that the planned consumption tax increase will proceed as scheduled. In that case, how the government will formulate measures to counteract the tax increase will be the key to stock price movements. (Editorial staff)
