The results of the tsunami and earthquake that dismayed Japan and the entire world caused a lot of fears that were built. The unforeseen act of Mother Nature did not just stayed into the minds of a lot of people but also affected the neighboring countries and the rest of the globe. Because of this massive damage, then came the nuclear meltdown which eventually cause radiation to spew across the country.
In the industry of finance and stocks, an investor would immediately assume that Japan’s stocks may add on to the burden. However, John O’Donnell, an expert of the Online Trading Academy,, a Chief Knowledge Officer could articulate his take on Japan’s current situation.
O’Donnell said,, “This event will cause deep financial and psychological damage for Japan communities especially those near “ground zero”. Japan will rebuild quickly as they did after World War II, as they are proven in multiple crisis era to be very resilient. I expect Yen to continue to grow versus dollar as capital is returned home to rebuild infrastructure.”
When he was asked about the possibility of recession, he simply replied, “Yes…short term disruptions to global supply chains to this export economy will cause recession conditions to continue as they are anemic economy since 1989 and over 220% debt/GDP ratio of Fed debts. Very extreme and will now need to borrow more money to rebuild.”
This economic collapse however is predicted to be short term only, just as long as the nuclear crisis is contained. The crisis will be continued until March of 2012.
Apple and General Motors are just some of the companies which can be directly affected by Japan’s massive earthquake and tsunami due to the fact that need suppliers from Japan to transmit their items. However, good news is, this will just be ‘short term’.