U.S. capital influx raises specter of 'Imperial Circle' warned of by Soros

Market distortions create risks for Japan stocks but also may bring opportunities

George Soros warned in the 1980s that the concentration of foreign money and goods in the U.S. was unsustainable. © Reuters

KAZUAKI FUJITA

February 1, 2025 03:08 JST

TOKYO -- As U.S. President Donald Trump's second administration pushes forward with its drive for American dominance, the concentration of global capital there risks distorting financial markets in a manner that reminds some market watchers of the 1980s.

"The situation looks increasingly like the U.S. 'Imperial Circle' that George Soros once identified," said Masayuki Kichikawa, chief macro strategist at Sumitomo Mitsui DS Asset Management.