General election for both houses on the same day, rumors circulate about another delay in raising the consumption tax rate!
From the investment newsletter “Sugimura Tomo Investment Salon” by Tomio Sugimura provided by GogoJungle, here is a small excerpt from what was distributed today.
Please recall June 1996 (on the 26th, the Nikkei Stock Average demonstrated a rebound high of 22,666 yen; at this time the then-Hoshii administration decided to raise the consumption tax rate from 3% to 5% and implemented it in April 1997). This tax rate increase, in addition to the stock price collapse, overlapped with the Asian currency crisis and led to an economic downturn in summer to autumn and concerns about the financial system. Shouldn’t we avoid repeating this mistake? It is said that foreigners have continuously been selling Japanese stocks because they are concerned about the economic slowdown that accompanies the consumption tax increase. Facing a society with a declining birthrate and aging population, it is well understood that a fund for social security is necessary. However, bringing the economy to a bottom would make everything pointless.
From “Sugimura Tomo Investment Salon” (Sugimura Tomo)Quoted.
There are growing voices worrying about the economy deteriorating due to the consumption tax hike. It is unclear whether the tax hike will proceed as scheduled, but it seems necessary to prepare for the risks.(Editorial staff)
