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News Trump Election's effect in Japanese Economy

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Nov 8, 2016
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Hey there everyone,

first thread opened in the forum. Since last night, I've been following the American Election Day and it came to my interest how this elections are affecting the economy in Tokyo. According to different media sources it is kind of a drastically damaging the stock in Tokyo. Aside from the different news in TV which claimed that it plunged down the stock about 10%, I'd like to share the following article with you and comment some ideas and hear some thoughts on this matter.

READ: Tokyo stocks plunge in morning trading on Trump victory possibility – JapanTimes.co.jp

I'm no expert on economy but it is interest to see how elections in US affect economy in Tokyo, therefore I'd like to hear some more about the reasons of some fellow users who can give more insight.

Greetings!
 
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Uncertainty in the future makes people afraid of risky investments. Stocks are inherently risky, so when there is uncertainty in the world (wars, disasters, etc...) people are less likely to buy or hold stocks, and as a result the markets deteriorate. On the other hand, things like gold do well in volatile, unpredictable situations, and so gold rises. People prefer the safety of something tangible and valuable like gold, rather than hold something conceptual like "shares of a company".
 
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Uncertainty in the future makes people afraid of risky investments. Stocks are inherently risky, so when there is uncertainty in the world (wars, disasters, etc...) people are less likely to buy or hold stocks, and as a result the markets deteriorate. On the other hand, things like gold do well in volatile, unpredictable situations, and so gold rises. People prefer the safety of something tangible and valuable like gold, rather than hold something conceptual like "shares of a company".
Thanks for this answer, it really helps me understand the reasoning behind the cause-effect of Trump › Japan Stock. :D
 
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Seems that after the brief period of panic yesterday, people woke up today to the possibility that this outcome might be good for business, and so money started flowing back into stocks. Probably predictable for some people, but I wouldn't have guessed it.
 
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Seems that after the brief period of panic yesterday, people woke up today to the possibility that this outcome might be good for business, and so money started flowing back into stocks. Probably predictable for some people, but I wouldn't have guessed it.
Yep, it feels like it. My japanese teacher and me were commenting about the subject and she also had the feeling that it was just a temporary fall of the stocks.

Thanks everyone for the insights!
 
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