💹 Yen Surge and Rising Rates Shake the Market | Weekly Money News (4th Week of January)

Weekly Money News | 4th Week of January

Hello from Real Money Notebook in 50s!

We’re already into the fourth week of 2026.

Just like the winter weather, the markets have been swinging between hot and cold with dizzying speed 🔥

In Japan, the dissolution of the House of Representatives sparked expectations for expansionary fiscal policy and a potential consumption tax cut, pushing long-term interest rates higher.

While the Bank of Japan kept its policy rate unchanged, Governor Ueda hinted at the possibility of a future rate hike, raising market tension significantly.

Meanwhile in the U.S., stock prices dipped on renewed tariff concerns with Europe, but quickly rebounded after a retraction of those comments.

In the currency market, speculation over coordinated Japan-U.S. intervention led to a sharp yen surge—making it a turbulent week all around.

What’s happening now? How should we prepare for these changes?

Here’s a roundup of this week’s key topics, with insights especially useful for those building wealth in 50s and beyond!

📈 Fiscal Stimulus & Consumption Tax Cuts Push Rates Higher — BOJ Hints at Hike

Following the dissolution of Japan’s lower house, both ruling and opposition parties began discussing a potential consumption tax cut.

This raised concerns over fiscal deterioration, sending long-term interest rates soaring to 2.343% at one point 📈

Although the BOJ decided to keep rates steady at its latest policy meeting, Governor Ueda’s comments suggested a possible rate hike in the future.

Markets are beginning to brace for a shift toward a “world with interest rates.”

It might be a good time to reassess your mortgage or bond investments.

U.S. Market Swings on Tariff News

In the U.S., the S&P 500 took a sharp dip on renewed tariff tensions with Europe ⤵️ However, the market quickly recovered after those comments were walked back ⤴️

Revised GDP figures and improving employment data further confirmed the resilience of the U.S. economy.

Nothing has changed — Stay in the market! Long-term investors should remain calm and steady.

💴 Currency Shock: Yen Surges!

Toward the weekend, Japanese and U.S. authorities conducted a “rate check,” a move often seen as a precursor to currency intervention.

This fueled speculation of coordinated action, causing the yen to surge sharply 💥

While a stronger yen can lower import costs, it also creates headwinds for foreign currency-denominated investments.

Still, don’t get caught up in the swings — JUST KEEP BUYING!

🏆 Fund of the Year 2025 Announced — Index Funds Dominate

The results are in for #FundOfTheYear2025, and the winners are: eMAXIS Slim All Countries and S&P 500 Index Funds, taking the top two spots 👏

Once again, index investing proves its strength. Individual investors continue to rally behind the tried-and-true strategy of long-term, diversified, and consistent investing.

💡 Spotlight: “A 5th Grader with ¥50 Million in Assets”

Another headline that made waves this week: A Japanese fifth grader reportedly turned a parental gift into a ¥50 million portfolio by investing in U.S. stocks over five years.

Of course, this success was made possible by a fortunate environment. But what’s truly worth noting is the importance of learning about investing, economics, and politics from a young age.

In Japan, money talk is still somewhat taboo. But in a world where saving alone may not protect your future, financial literacy is more essential than ever.