Land of the Rising Trade Tension 🎴

Land of the Rising Trade Tension

Forget the US and China; it’s Japan and South Korea we should be worried about! The two Asian economies have come to blows after years of political tension, now giving investors plenty to think about as a financial tsunami builds against electronics stocks around the world. 

South Korea has lost its place in Japan’s good books, no longer being called a ‘preferred trading partner.’ The South Koreans are accused of using Japanese imports for military applications, and booting them from his ‘whitelist’ has been a move Japanese Prime Minister Shinzo Abe has been threatening for a while. We’re talking years, and it didn’t help when South Korea poured fuel on the fire by bringing up the ghosts of their past. Some think the South Korean government has been egging on its citizens to sue the Japanese for forced labor back in, wait for it… 1945. What has the world come to? 

It’s all deadly serious to investors, however. Trade between the two nations is about to get a lot more congested as imports and exports are subject to more checks than usual, and who knows where this could lead? The dispute is yet to show signs of simmering down, and markets across the globe are concerned about full-on tariffs coming into play. With the South Koreans already promising revenge, don’t be surprised if growth forecasts for the global economy lose a few points!

As the global epicenter of electronics manufacturing, Korea has a lot to lose. Consumer products companies from the US have their supply chains taking a direct route through the Korean peninsula, boosting economic prosperity in the southern region.

It just got real in Tokyo and Seoul. Both economies are trading barbs, but soon, they may not be trading much at all. Origatto for now, investors!

Share:
More Posts
OPEC’s Decision 🛢

OPEC leaders just hosted an important late-November meeting that may signal a change in strategy.

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.