Perspectives Blog

Japan — All in with Abenomics

Fred Copper, Senior Portfolio Manager | June 6, 2013

…ill manifest as continued jaw dropping volatility in the financial markets. GaveKal’s Anatole Kaletsky summed the situation up perfectly: “The fiscal and monetary expansion already implemented in the first few months of Abenomics have been so extreme that there is no turning back. Unless Japan can achieve much faster economic growth, Abe’s borrowing and spending radical experiment with macroeconomic stimulus will create a debt and monetary…

Is Japan’s economic rebound for real?

Daisuke Nomoto, Senior Portfolio Manager | May 23, 2013

Bold monetary easing in Japan has resulted in a shift in sentiment that the Japanese economy will finally come out of the long, dark tunnel. Our research suggests that there may be a modest boost to real income in coming months, which is expected to translate into increased consumer spending. We wouldn’t be surprised if the Japanese equity market takes a breather in the near-term, but this would create a good entry for people who have missed th…

When the QE tide recedes, focus on what is revealed

Robert McConnaughey, Director of Global Research | January 6, 2014

…pside against that backdrop of lower expectations. Japan, having suffered through almost two decades of malaise, has reasserted itself on the global stage with the bold economic policies that have become known as “Abenomics.” Abenomics has been described as having “three arrows”: 1) aggressive monetary easing, 2) fiscal stimulus and 3) structural reforms. Japanese markets responded extremely favorably to the competitive boost the economy has rece…

Does Japan’s sell-off present buying opportunities?

Daisuke Nomoto, Senior Portfolio Manager | February 10, 2014

What’s behind the Japanese stock market’s recent correction? What’s ahead for Japan’s stock market, currency and government policy? Why the risk/reward tradeoff looks attractive at current price levels Abenomics has already had a bigger impact on the Japanese economy and financial assets than the failed attempt at quantitative easing between 2001 and 2006 (see chart). Inflation has moved back into positive territory, and household income is ri…

Three investments that could return to favor in 2014

Jeffrey Knight, CFA, Head of Global Asset Allocation | December 16, 2013

When an out of favor investment is re-discovered, sustained outperformance often follows The three criteria we look for in identifying an out of favor asset class or investment strategy Why Japanese stocks, EM stocks and active equity strategies may soon be rediscovered When investors lose confidence in an asset class, especially one that had been popular enough to attract outsized allocations, subsequent rebalancing generally leads to prolong…