Quote:
Originally Posted by FTEIGHTSIX
Whether or not it’s sustainable is an economics question.
The economy is good now, so the business can thrive. Problem is... as soon as we have another recession, the market will plummet and disappear, much like it did 9-10 years ago.
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It's not that simple, but I will say importers that buy from Japan directly (in JPY) are more exposed to a recession than others that buy via USD.
When a recession hits, the JPY spikes in value and the exchange rate often falls below 1 USD = 100 JPY. If it's below this mark, most importers lose (lots of) money and it's hard to adjust pricing in a manner that will cover your bottom line.
Only those that buy overseas in USD will be better isolated from a recession. Namely, those that buy from vendors that export in USD, which is a lot of East/Southeast Asia countries outside of Japan/China/S.Korea...