16-07-2025

Global Economy Shows Resilience Amidst Crises

Date: 16-07-2025
Sources: economist.com: 5
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Source: economist.com

Image content: The image appears to be a map of southern Africa, with a large white shape resembling a bird or an animal overlaid on top. The map is colored in various pastel shades and features black outlines around the countries and waterways. The main subject and content of the image includes a map with Zambia highlighted in yellow and labeled with its name, and a large white shape on the right side of the image that is outlined in black. The map also includes other countries in the region, which are colored differently.

Summary

The global economy has demonstrated an ability to adapt and thrive despite various crises, with investors increasingly looking beyond past performance to future prospects. Recent trends include a surge in investing interest in Japan and the US employing creative strategies in its trade war with China.

Key Points

  • Investors often rely too heavily on past performance rather than future prospects when making investment decisions.
  • The global economy has shown historical resilience in the face of crises, such as during World War II.
  • Japan is experiencing an 'investing fever' with increased interest in financial markets among its population.
  • The US is using indirect methods to wage a trade war with China through trade deals with other countries.

Articles in this Cluster

Don’t invest through the rearview mirror

The article 'Don’t invest through the rearview mirror' discusses how investors often price stocks based on past performance rather than future prospects. It explains that in an ideal world, stock prices would be determined by forecasting future cash flows and discounting them to their present value. However, the reality is more complex due to factors like interest rates, risk, and investor appetite. The article emphasizes the importance of looking forward when making investment decisions rather than relying on historical data.
Entities: markets, investors, The Economist, Jane Street, IndiaTone: neutralSentiment: neutralIntent: inform

Finance & economics | Latest news and analysis from The Economist

The Economist's finance and economics section discusses various global economic issues, including the impact of trade wars, market trends, and investment strategies. It highlights how the global economy is adapting to crises and the role of economics in shaping ventures. The section also covers specific country-focused stories, such as Japan's investing fever and Iran's war economy, as well as company-specific news like Jane Street's exit from India and Vanguard's fee reduction.
Entities: The Economist, Donald Trump, China, Jane Street, IndiaTone: analyticalSentiment: neutralIntent: inform

How the economy evades every crisis

The article discusses how the global economy has historically shown resilience in the face of crises, citing the example of British investors during World War II who made significant profits despite initial fears of economic destruction. It highlights the ability of markets to adapt and look forward, rather than being deterred by current events or past experiences.
Entities: Adolf Hitler, Europe, Britain, London, The EconomistTone: analyticalSentiment: positiveIntent: inform

Japan has been hit by investing fever

Japan is experiencing an investing fever, with a surge in interest in financial markets and investing among its population. This is evident in the proliferation of financial guides in bookshops, advertisements for investing seminars on trains, and the popularity of financial influencers online. The trend is driven by a growing realization that leaving money in savings is wasteful, with young influencers like Ponchiyo, a 31-year-old YouTuber, playing a significant role in promoting investing among the younger generation.
Entities: Japan, Ponchiyo, YouTube, The Economist, TokyoTone: neutralSentiment: positiveIntent: inform

Trump’s trade deals try a creative way to hobble China

The article discusses how the US, under Donald Trump, is indirectly waging a trade war with China by imposing conditions on other countries through trade deals, rather than directly imposing new tariffs.
Entities: Donald Trump, China, America, Soviet Union, GenevaTone: analyticalSentiment: neutralIntent: inform