America 2021, Japan 1987: Ian Harnett in FT Unhedged

Beth McCann

9th JUN. 2021

Is the current US stock market analogous to the Japanese market in 1987? 

Ian Harnett and ASR charts make the case to Robert Armstrong.


Ian thinks the ASR chart (showing Japanese and US stock prices and price/earnings ratios, at a lag of 35 years) tells a tale of poor Japanese fiscal and monetary policy, which were too easy for too long…. current policy could well be inappropriate too: 


“Economic shocks help to justify both policies. In Japan in the 1980s, the shocks were the Plaza Accord and the 1987 crash. In the US today, it is the pandemic.”


Read the full article HERE (FT subscription may be required) 

For a trial of ASR research, please reply HERE