Japan is in a recession. Should we buy or sell?

Japan is from today technically in a recession.

The economy in the first quarter of 2020 (Jan-March),

fell -3.4% on an annualized basis.

This is the second fall in a row.

As a result, Japan has now formally entered a recession.

But the news isn’t as bad as it sounds.

Analysts forecasted an average a -4.6% annualised drop of GDP.

So the fall in Japanese GDP is actually a POSITIVE SURPRISE.

We should therefore expect markets to be positively affected,

as the better than expected results in the economy,

also mean higher that expected corporate profits,

and improved company valuations.

new-economy.gr