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Learning, Sharing, and Teaching => Investor Alley => Topic started by: Ready2Save27 on December 10, 2019, 08:06:06 PM

Title: What-If Scenarios Discussion: Japanification & Negative Interest Rates
Post by: Ready2Save27 on December 10, 2019, 08:06:06 PM

First I want to preface this by saying that regardless of any concerns I have, I am regularly investing and staying the course. I am posing these questions as a thought experiment of sorts and to think through possible scenarios. I don’t think these will happen and know we can’t know for sure the ramifications, but am interested in your opinions on how you think investing would change (if at all).

What would happen if the US experienced Japanification- a 10+ year market stagnation? Would investing in stocks still be wise, or would it be better to invest elsewhere? At what point in this process would you (if at all) switch investment strategies? How would one recover if their portfolio was permanent slashed in half with smaller returns?

What would happen to stocks if the US enters negative interest rates? Would international stocks gain a boost as a result? Would it make sense to shift to a heavier international exposure at some point? What would happen to US bonds?

I know none of us have a crystal ball, but am interested in what you think.

Title: Re: What-If Scenarios Discussion: Japanification & Negative Interest Rates
Post by: UnleashHell on December 11, 2019, 07:37:15 AM

what if..... you did a search on Japan in the search bar...

Title: Re: What-If Scenarios Discussion: Japanification & Negative Interest Rates
Post by: ChpBstrd on December 19, 2019, 03:06:36 PM

 https://forum.mrmoneymustache.com/investor-alley/which-asset-classes-will-do-well-in-a-deflationary-environment/ (https://forum.mrmoneymustache.com/investor-alley/which-asset-classes-will-do-well-in-a-deflationary-environment/)

 https://forum.mrmoneymustache.com/investor-alley/econ-nerds-could-lower-interest-rates-qe-be-disinflationary/ (https://forum.mrmoneymustache.com/investor-alley/econ-nerds-could-lower-interest-rates-qe-be-disinflationary/)

I recommend these because I think the conversations are worth continuing.

Title: Re: What-If Scenarios Discussion: Japanification & Negative Interest Rates
Post by: Ready2Save27 on December 19, 2019, 06:28:32 PM

Thanks for the links! I’ll definitely take a look at those.

Title: Re: What-If Scenarios Discussion: Japanification & Negative Interest Rates
Post by: RWD on December 19, 2019, 09:19:19 PM

Another good read:
https://forum.mrmoneymustache.com/investor-alley/why-the-us-stock-market-will-never-repeat-the-japanese-stock-market-experience/