Following Fed Chairman Powell's statement that "it's time to cut interest rates," San Francisco Fed President Daly also indicated on the 26th that the start of interest rate cuts is appropriate. This week, it was stated that the Fed needs to cut interest rates in order to maintain the health of the job market. Richmond Fed President Barkin stated that although there are still risks of inflation overshooting, he supports an "adjustment down" in interest rates due to the cooling labor market, making a September rate cut the default path.
The Federal Reserve Board's monetary policy is shifting from tightening to easing.Central banks around the world are transitioning from tightening to easing.As central banks around the world cut interest rates and begin a new cycle of monetary easing, ...Which assets are becoming more attractive for investment?。
As mentioned in the previous article...Biotech stocks、Increasing the ratio of defensive stocks like utilities industry would be wise.、Consumer staples stocks、Telecom services stocksIn addition, another major sector benefiting from the Fed rate-cut cycleFinancial stockswill be discussed.
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While companies with good financial results, including the July-9 fiscal year, stood out, such as an improvement in business performance due to the depreciation of the yen, what became one of the few negative factors was the modulation of companies with a high degree of dependence on China. The full-year outlook was revised downward due to the effects of the cooling of the Chinese economy $Shiseido (4911.JP)$Ya $OMRON (6645.JP)$The stock prices of such companies fell drastically after financial results were announced.
Views have also been heard that it will take time for the Chinese business to recover, and for the time being, it seems necessary to be wary of fluctuations in stock prices for “China-related stocks.”
A drastic downward correction will cause stock prices to plummet
Omron, which lowered its value by about 16% the day after the announcement of financial results, drastically revised its full-year operating profit forecast downward from 102 billion yen to 45 billion yen resonated. In the second quarter, sales of the control equipment business in China decreased 17.9% compared to the first quarter due to stagnant market conditions, etc. This trend is expected to continue after the 3rd quarter, and downward revisions were made.
As for Shiseido's sales for the third quarter (fiscal year ending July-9), the travel retail business, which handles duty-free shops etc. in Hainan Island, China fell 25% from the same period last year, and China...