Perspectives Blog

Is Japan’s economic rebound for real?

Daisuke Nomoto, Senior Portfolio Manager | May 23, 2013

…asing” are all over the headlines about Japan. Prime Minister Abe unveiled his economic policy late last year calling for a 3% annual nominal gross domestic product (GDP) growth target and an aggressive monetary easing by the BOJ (The Bank of Japan) to achieve 2% inflation. The BOJ unleashed the world’s most intense burst of monetary stimulus last month promising to double the monetary base to 270 trillion yen ($2.7 trillion) by the end of 2014 t…

Does Japan’s sell-off present buying opportunities?

Daisuke Nomoto, Senior Portfolio Manager | February 10, 2014

…Japan (BoJ) intends to increase the monetary base by ¥60trillion to ¥70trillion annually. With the Federal Reserve slowing its pace of money expansion, we expect Japan’s monetary base to grow at a relatively higher rate. The BoJ is committed to a policy of large-scale purchase of Japanese government bonds (JGBs) and risk assets to stimulate economic growth and bring up inflation. If this policy is successful in increasing growth and inflation, i…

Japan — All in with Abenomics

Fred Copper, Senior Portfolio Manager | June 6, 2013

Japan has gone all-in in their battle against deflation and stagnant growth. Prime Minister Shinzo Abe has committed to a fiscal and monetary blitzkrieg, and there’s no going back. Huge uncertainty and massively divergent outcomes will manifest as continued jaw dropping volatility in the financial markets.   Price return of Nikkei Index, November 2012 — May 2013 Source: Bloomberg, May 2013, Past performance does not guarantee fut…