A long history of accurate predictions in world markets has given Stansberry Research, a leading publisher of financial advice, the ears of many when it discusses global trade. Its recent advice on handling investment in Japan is no exception. Advising readers from his DailyWealth newsletter, editor Steve Sjuggerud addressed his past recommendations to invest in the Japanese market while also providing guidelines for a way forward in the changing face of the world economy. Read on for a look at these recommendations as well as a glance at the publisher who connects Sjuggerud and others with a growing community of readers and subscribers.
Stansberry Research was founded in 1999 by the prominent financial analyst, Porter Stansberry. Founding the publishing company at his kitchen table on a borrowed computer, he was seeking to build a unique purveyor of financial information that prioritized quality of advice presented in a personal manner. In this pursuit, the publisher adopted two guiding principles. The first was that they would strive to give their customers the information they themselves would want if their roles were reversed. The second was that they would only publish analysts whose advice and strategies they’d want their own families to read and follow.
The results from this new approach to dispersing financial information were striking. With customers responding to the publisher’s focus on quality advice, readership grew precipitously in the years following the company’s founding. Now, Stansberry Research lays to claim to over 500,000 subscribers and 70,000-lifetime subscribers. This sizable readership base is just one example of the attention the company’s various newsletters, bulletins, and advisories have garnered over its almost twenty-year history.
One example of the type of quality advisories the publisher has dispersed over the years is the 2016 recommendation by Sjuggerud to invest in Japan’s economy. At that time, Japan’s central bank was seeking to raise inflation rates through a series of stimulus efforts. Notable among these efforts was the acceleration of their quantitative easing program by slashing interest rates. The bank promised to continue these efforts until inflation rose above a long-term target of two percent.
Upon analyzing this set of circumstances, Sjuggerud felt that the Japanese economy was primed for rapid growth. He advised readers of his newsletters to enter the market to take advantage of what he felt would be growing a tailwind to push stocks and other investment vehicles upward. To date, that prediction has proved lucrative for any who took Sjuggerud’s advice. Japanese stocks have gone up more than twenty percent since his recommendation.
One of the primary methods Stansberry Research uses to provide subscribers with the highest quality of analysis is to ensure it publishes a spectrum of opinions (http://thedailyrecord.com/2018/01/15/gary-d-anderson-stansberry-research/). This eschewing of a unified voice in favor of a diverse set of views allows the publisher to provide a greater number opportunities to its readers. The publisher does, however, look to a guiding philosophy to link its many voices. This philosophy is rooted in a two-handed approach that encompasses a commitment to risk management as well as a contrarian approach to identifying investment opportunities. The publisher often focuses on investments that are largely unknown, feeling that these situations offer some of the greatest opportunities to provide subscribers with lucrative returns.
Another tenant of Stansberry Research’s philosophy is their commitment to transparency and accountability. Keeping in mind that it can be easy to furnish a number of investment approaches and then retroactively highlight only those that were successful, the publisher prioritizes engaging in routine and reliable measures of performance. To this end, all of their investment recommendations are publicly evaluated each year and all of their investment newsletters include track records with each monthly issue.
Japan’s Changing Economy
In keeping with the continued commitment to reevaluate past recommendations, Sjuggerud recently revisited the topic of investment in Japan. With governments across the world raising, or pledging to raise, interest rates, pressure has mounted for Japan to do the same. This has provoked fears that the end of Japan’s stock market boom could be near. In fact, in response to recent remarks by Bank of Japan Governor Haruhiko Kuroda in which he hinted at the impending end of stimulus programs, the Nikkei 225 index fell three percent. Clearly, investors were spooked.
With these rapidly changing developments in mind, Sjuggerud and Stansberry Research reached out to his readers with a take that was characteristically contrarian. Though concerns were mounting around the world that Japan’s bull market was over, Sjuggerud advocated for investors to stay the course. “The thing is, Kuroda doesn’t just want inflation to reach 2%,” said Sjuggerud. “He specifically wants to dramatically overshoot that 2% target. And even when he spoke last week, he said that this ‘overshooting commitment’ is still in place. Japan is nowhere near overshooting 2% inflation. And it won’t be in 2019, either.”
While many read into Kuroda’s comments to mean that 2019 would spell the end of Japan’s stimulus efforts, Sjuggerud saw that there was still opportunity in the market. With the belief in mind that Japan still had a ways to go before it achieved the central bank’s inflation rate goals, he felt confident in leaving his recommendations for readers unaltered. Though his advice remained consistent, it speaks to the larger culture at the publisher that Sjuggerud felt compelled to check in on his past analysis and examine how recent headlines might affect his strategy in Japanese markets (Testimonials).
With the above high-level analysis being a constant fixture in the myriad of advice dispensed by Stansberry Research, it’s perhaps unsurprising that the publisher enjoys such a respected reputation amongst those seeking financial guidance. As the company builds on nearly twenty years of operation, it will continue to seek out new ways to serves its larger missions. These missions include doling out advice that they themselves would feel comfortable taking, as well as ensuring that their advice is well-reviewed to prove its value on its own merits. With this commitment to excellence deeply ingrained in the publisher’s culture, it’s clear that they will continue to be a valued source of financial information for a long time to come.
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