My Prediction Came True: Where to Find Opportunity Despite Market Unpredictability
Hello, Reader.
If we had to sum up the last several weeks into one unifying theme, I think we could all agree that “unpredictable” does the trick.
But as we’ve seen with the recent selloffs, unpredictability is one major reason why the stock market has been struggling to stay on track.
It doesn’t like uncertainty. Never has, never will… especially not when that uncertainty is self-inflicted.
The good news is that even a small dose of consistency from the White House would go a long way toward helping the stock market stabilize. The bad news is that no one can predict when, or even if, that might occur.
As investors, we can only guess what might happen next, then do our best to set a course that is as immune as possible to the rapid-fire edicts and policy revisions issuing forth from the White House.
During the months leading up to Trump’s inauguration, I made a few guesses about how stock market trends might unfold in 2025… and I wasn’t entirely wrong.
For instance, I predicted that “lowly valued… foreign stock markets [would] outperform the S&P 500 this year… the Japanese stock market, for example, could deliver a surprisingly strong performance.”
When I wrote about the opportunity coming from the Japanese stocks here at Smart Money back in January, I mentioned that the resurgence of Japan’s Nikkei 225 index over the last couple of years could be signaling a new era of superior economic growth. Already, the Japanese economy has regained a solid financial footing.
Japanese businesses are also opening their wallets and spending. Capital investment rose 8.1% last year and is trending sharply higher. Expressed as a percentage of GDP, capital investment has climbed to 26%, which is the highest level in 16 years.
