Japan: Proud & Independent

Firing a missile over Japan was a tactical error by the Supreme Leader of North Korea.  It is one thing to play bluff with the US but to tease Japan in this way is to insult their culture and heritage.  They have awoken the giant.

Economically, the furious activity to ready themselves to defend their people will strengthen them – as previously predicted in our recent blog “Will there be a war between North Korea and the USA?”.

For the suppliers of raw materials to Japan, expect an upturn.

Australian Raw Materials

Last financial year Japan was Australia’s third-largest trading partner and second-largest export market.

Japan lacks many raw materials such as oil, coal, iron ore, copper, aluminum and wood.  In 2015-16, Australia’s major merchandise exports to Japan included LNG, coal ($11.2 billion), iron ore ($4.7 billion), beef ($1.8 billion), and copper ores and concentrates ($1.4 billion).

Imports to Japan jumped 16.3 percent year on year to July 2017. Australia grew its exports by 36.1% – including raw materials +30.7% and Mineral fuels expanded by 25.9 % (of which LNG is half).

Whilst the world waits for a resolution of the North Korean Missile Crisis, instability is one thing we can count on. We now expect growth in raw materials into Japan (including those) supplied by Australia. 

Pythagoras provides recommendations on dozens of companies which could stand to benefit from such a change.  They include big and small mining companies as well as the “pick and shovel” companies who provide services to mining companies – what we call the infrastructure builders.  A listing of those companies and their 5 year returns are located HERE.

US-North Korea a contained situation

Thus the US-North Korea situation is a controlled firestorm at present, with lots of impacts to come from it as it reshapes a lot of future International policies and practices.

Outcomes

What we can draw from all of this is a long period of uncertainty and world insecurity, as new powers try to assert themselves.  We also know the likely beneficiaries from this act are Australian Mining companies and Infrastructure Builders which we specialise in providing recommendations for.

Our blog this week on Programmed Maintenance Bonanza gives a practical example of how you can use Pythagoras to make money.

What do we do?

We follow the changes in our Pythagoras Investment Timing Indexes. They offer a mathematical understanding of the stock market through Volatility, which show that price sensitive events are predictable from changes in Volatility (i.e. in advance of price moves). These changes lead to buy/sell recommendations.

We recommend a sell when the market/stock is at risk of going down, or no-where. At these times we recommend investing in cash and await the buying opportunity. When the market/stock is less risky, and it’s going to go up, we reinvest to profit.

How Do You Protect Yourself ?

Don’t be the last to know – get ahead of the crowd using Pythagoras  Investment Timing Indexes.  Our website has all the information to show you how Volatility can be utilised to alleviate the tension and improve your life when investing, especially when the going is hard.

Our 5 year returns are worth a look.

Want to know more?

Brendan is available on 0433 726 888 to discuss how we can assist to release you from the worry of investing and get you back to enjoying life.

Disclaimer: The information in this document (“Information”) is not intended to constitute advice.  It is for general information only and does not take into account your individual objectives, financial situation or needs.  You should assess whether the information is appropriate for you and seek professional financial advice before relying on or making investment decisions based on the Information.  Investment products are subject to risk including the loss of income or capital invested.  Past performance is not an indicator of future performance.  Neither Pythagoras Investment Timing Index Pty Ltd ACN 147371113 (AFSL 431 238), its directors, employees and representatives (collectively, “Pythagoras”) warrant the accuracy or completeness of the Information. To the extent permitted by law,  Pythagoras disclaims all responsibility and liability for any loss or damage of any nature whatsoever which may be suffered by any person directly or indirectly.