Is the U.S. economy beating Japan’s?
It’s the question everyone’s been asking me this week because Japan’s household spending just dropped for a third straight month.
The best way to tell how the U.S. economy is doing is to compare it to other major nations — especially if we’re looking to gauge the speed of our recovery from the nasty COVID-19 pandemic that ripped the global economy to shreds.
In other words, it’s crucial to compare the U.S. economy to other major ones to see how our progress is working out in comparison.
So without further ado, let’s take a look at how the U.S. economy is beating Japan’s and shaping up compared to other countries — and exactly how to play it for potential gains.
Interestingly enough, Japan’s household spending data released this past Tuesday shows a major decline in its economy. Household spending is down 6.6% in February with dining, clothing, transports and entertainment all falling sharply.
And according to some analysts, people are still worried about COVID-19. Medical experts are warning that Japan could brace itself for a fourth wave of surging infections and deaths related to COVID-19.
If you look at the JPMorgan BetaBuilders Japan ETF (BATS: BBJP) or the iShares MSCI Japan ETF (NYSEArca: EWJ), which track the Japanese stock market, both appear to be sitting at their 50-day moving averages and struggling to make new highs.
But on the other hand, U.S. household spending is accelerating…
The Federal Reserve said consumer spending, or the biggest driver of economic activity, fell only 1% in February. And that drop was largely caused by the cold weather and storms that stumped most of the country, which isn’t really a financial factor.
So you do the math, folks…
Income and spending are set to rise in the coming weeks, setting up the U.S. economy for what experts are forecasting to be its strongest growth in years.
Check out my short video below on how the U.S. economy is beating Japan’s, and be sure to share your thoughts in the comment section below. I have one fund you can go long on while shorting one or even two others.
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