Mireya Solís 2.0 2 ideas

PM Takaichi plans massive fiscal spending and industrial policy despite Japan having one of the world's highest debt-to-GDP ratios. Solís notes markets are "nervous" about her floating a consumption tax cut. "Fiscal Dominance" is coming to Japan. High spending + tax cuts + inflation = bond market vigilantes. The BOJ may be forced to print to cap yields (bad for Yen) or let yields rip (bad for JGB prices). SHORT JGBs (expecting higher yields) or AVOID Japanese sovereign debt entirely. The BOJ intervenes heavily to suppress yields, crushing short positions.

Prime Minister Takaichi has secured a super-majority and explicitly identified the defense industry as a priority sector for industrial policy and exports. She aims to amend the constitution to allow for a more robust military stance. This is a regime change for Japanese industrials. Japan has advanced manufacturing capabilities but has been legally restricted from the global arms trade. Unlocking defense exports turns domestic industrial giants into global defense primes. LONG. Look for Japanese heavy industrials (often found in broad Japan ETFs or specific industrial baskets) and global defense ETFs (ITA) that may partner with them. Public backlash against constitutional amendments or geopolitical friction with China.