BTC iShares MSCI Japan ETF

In recent weeks, we’ve witnessed volatile behavior in the markets (SCHB) due to political turbulence in the United States and increased investor impatience.

Broadcom (AVGO) is bidding for Toshiba’s (TOSBF) NAND (negative-AND) Flash business in order to expand in the network storage market.

The celebration of Emmanuel Macron’s victory in the French election began when the markets opened in Asia on May 8, 2017. Asian markets excluding China (YINN) rose.

Cypress (CY) is aiming to gain more market share in the USB space with its new USB-C port, a common connector for all electronics devices.

Micron Technology (MU) has achieved a 25% cost reduction by transitioning from 25nm to 20nm.

Prime Minister Abe’s administration initially achieved coordination between the Bank of Japan’s QQE and fiscal stimulus.

OppenheimerFunds Leading indicators of the global economy are climbing and that generally bodes well for equities. Previously, we highlight the tight fit between the JP Morgan Global Composite Purchasing Managers’ Index (black line, left axis)—a leading indicator of worldwide business activity—and the year-over-year returns of the MSCI All Country World Index (ACWI) returns since 2000. […]

The International Monetary Fund (or IMF) warned that there are three major risks to the global financial system in its latest report on global financial stability.

The IMF expects Japanese economic growth to be 0.5% in 2016—the same as in 2015—and to tick up to 0.6% in 2017.

The Bank of Japan will set two interest rates: a short-term policy rate and an operating target for long-term interest rates. These rates will serve as guidelines for market operations.

Japan’s economy showed no growth on a quarterly basis in 2Q16—compared to growth of 0.5% in the previous quarter and forecasts of a 0.2% expansion.

Looking at the change in growth forecasts in advanced economies, the United Kingdom suffered the largest downward revision of estimates.

Amazon’s other services, which were developed to support its core retail business, have now become its revenue and profitability drivers.

The global distribution of digital games is expected to reach $12.9 billion in 2019 and should account for 19.6% of the industry’s overall gaming revenue.

According to the Entertainment Software Association (or ESA), 29% of all video game users are between 18–35 years of age, whereas 27% of players are below the age of 18.

Starting with a modest computer game developed in the 1940s, the video gaming industry has exploded as graphics and technology continue to advance. This series will look at the various trends and highlights that impact the gaming sector.

Market participants believe that the BoJ (Bank of Japan) needs to do more to beat deflation and propel the Japanese economy to sustainable long-term growth.

The BoJ is the one of the largest holders of Japanese (DFJ) government bonds and also a major player in equity markets.

Bill Gross thinks that the era of double-digit stock returns (SCHB) (USMV) and high single-digit investment-grade bond returns is over.

Qualcomm (QCOM) has stated that its total SAM (serviceable addressable market) is expected to grow from $23 billion in 2015 to about $100 billion in 2020.

Consumer trends directly impact the semiconductor industry. For instance, consumers shifted from PC to mobile, negatively impacting Intel’s revenue.

Netflix has had difficulty in acquiring global streaming rights for content from media companies. This is due to its status as the sole buyer of streaming rights on a global basis.

Hulu CEO Mike Hopkins said at an industry conference in Cannes, France, that Hulu was not looking to expand into international markets any time soon.

Currently, Amazon’s Prime Video service is not a major player in the video streaming market, but it continues to grow at a rapid pace thanks to Amazon’s continued investment.

Reviewing Ray Dalio’s economic principles template is helpful to understand the situation in Japan. It’s important to understand Japan’s challenges.

In 1990, Japan led the semiconductor industry, with six companies named in the top ten semiconductor sales leaders. In 2014, only two companies made the list.

According to IDC, YoY growth in worldwide semiconductor revenues should slow from 7.1% in 2014 to 3.6% in 2015. Semiconductor revenues are estimated to reach $389.4 billion in 2019.

Since 2014 when a slowdown in PC shipments hit its revenue, Intel has shifted its focus toward chips for smartphones and tablets.

Japan needs to work on reducing the regulatory, political, and social barriers that hinder productivity and profitability in its economy.

Many of the emerging markets that were viewed as risky or even dangerous a mere 15 years ago now appear to be more attractive than many developed countries.

In an effort to reduce inequality and poverty in Latin America, governments there have increased education spending many times over in the last decade or so.

The overall large-cap technology sector is suffering from currency issues. Microsoft expects a 4% hit to its revenue growth, and Apple expects a 5% hit.

Japan is a classic case of how depreciating currency can boost economic growth. The stimulus package, launched in October 2010, worked over the short term.

Japan looks cheap compared to other developed markets. Japanese stock valuations can be justified if the “three arrows” are used prudently.

As the second-biggest economy in the world, China is important. It’s also growing at a much faster rate than the biggest economy, the US.

On December 1, 2014, Moody’s Investors Service, a business unit of Moody’s Corporation (MCO), downgraded Japan’s debt rating by one notch, from Aa3 to A1, with a stable outlook.

Most emerging markets have less debt compared to their developed market counterparts. This means emerging market bonds aren’t as risky as you may think!