There is a clear pattern in the Trump administration's rhetoric and actions! [From Tomoki Sugimura's newsletter]
From the investment e-newsletter "Sugimura Tomo's Investment Salon" by Sugimura Tomo provided by GogoJungle, here is a portion from today’s delivery.
It’s the peak of the scorching heat across the islands. It’s incredibly hot. Surely, the Earth is heading toward warming, isn’t it? In the American market, Beyond Meat, which is soy-based artificial meat, and NextEra Energy, a company focused on CO2 reduction, have seen their stock prices skyrocket. They are companies that are kind to society, people, and animals. Unlike President Trump’s Madman Theory, I think corporations and the American people are clearly aware of the current state of affairs.
By the way, the author argues that companies that are not kind to society and people will struggle to achieve sustainable growth, and may not survive. At this moment, Eiichi Shibusawa, who appears on the new 10,000-yen note, in his book "The Analects and the Abacus," admonishes the recklessness of capitalism (business) and calls for consideration for society (the weak). It seems that politics and the world are clearly changing.
Now, the market at hand has fallen into a completely summer-doldrums pattern. With the April–June earnings reports completed, politics are taking a recess (summer holiday) both domestically and internationally. People are buzzing about a “nine-day holiday.” The high school baseball tournament is in its climax. Well, there is little material to work with. However, as the autumn wind begins to blow, I believe there will gradually be some brightness.
In addition to the time-related factors, there is the expectation that the Abe administration’s fiscal spending (economic measures) will materialize in preparation for the October consumption tax rate hike (8% → 10%), and the possibility that the postponement of the fourth round of U.S. tariffs on China (worth $300 billion) planned for September 1 will occur.
There is no need to reiterate. The pattern of action of the Trump administration follows a certain law. In other words, it adjusts its rhetoric and actions depending on the levels of the NY Dow and its approval rating. The lower target for the NY Dow is around 25,300 dollars, and the lower bound of the approval rating is 40%. When it approaches these levels, its diplomatic strategy becomes flexible. Wasn’t the unilateral postponement of tariffs on Mexico (10%) around that time?
Moreover, it is precisely during this summer doldrums that one should think of sowing seeds in preparation for the autumn harvest. Students preparing for exams are the same, right? The efforts now will lead to the next spring’s “Sakura Saku” (cherry blossoms bloom). The theme that has risen rapidly is Agrifood Tech. A coined term combining agriculture/food and technology.
“Sugimura Tomo’s Investment Salon” (Sugimura Tomo)Quoted.
The market is currently in a summer drought, but there are materials expected to move significantly in the autumn for both Japan and the U.S. to capitalize on, so it might be worthwhile to pay attention to “Agrifood Tech” related stocks, as Sugimura-sensei pointed out. (Editorial department)
