By the way, when it comes to false growth due to inflation and government spending, the Liberal Democratic Party has made a typical statement in their House of Councillors election pledge, saying "We will achieve a GDP of 1,000 trillion yen by 2040 and move towards a growth economy." If you calculate the current nominal GDP of 620 trillion yen with the current CPI compounded, it automatically results in a GDP of 1,000 trillion yen by 2040. I think it's deceptive to talk about a growth economy without being able to aim for a real GDP growth of over 2%.
- The popularity of BTC and gold, which produce nothing
- Prime real estate that is scarce but has low yields
- European stocks that are gaining popularity due to expectations of government spending, despite no growth in EPS or GDP
- The M7, excluding Nvidia, is barely maintaining the appearance of EPS growth despite a slowdown in revenue growth due to workforce reductions
- Activists in Japanese stocks have become most active in buying real estate and policy holdings based on past value rather than growth
All of these are reflections of an era of low growth or false growth driven by inflation and government spending. Even if we mock it as false growth, we must understand that this is the era we are in, and this trend is likely to become even stronger in the AI era.
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