The Real Risk Is Japan

Submitted by Dhaval Joshi, chief strategist of BCA Research

As the US stock market propels to new highs, investors are naturally wondering where the biggest risk to the bull market might come from. Unfortunately, most people are looking in the wrong place.

The biggest risk to the bull market is not a US recession. Nor sticky US inflation. Nor underwhelming stimulus in China. Nor a stagnant European economy. The biggest risk to the bull market comes from Japan.