Next year, we’ll find out whether Prime Minister Shinzo Abe’s “three arrows”—fiscal stimulus, monetary easing and structural reforms—will hit their target, stimulating Japan’s ailing economy and pulling the country out of stagflation.
The last of Prime Minister Shinzo Abe’s “three arrows”—structural reforms—will be critical to ending stagflation and stimulating Japan’s economy. We dig into Japan’s macroeconomic picture and highlight our favorite stocks.
Investors looking to profit from the changes under way in Japan’s economy should focus on the beneficiaries of Prime Minister Shinzo Abe’s “three arrows” of fiscal stimulus, monetary easing and structural changes to the labor market and economy. Our favorites: real estate, financial stocks and drugstores.
The recent correction in the Nikkei 225 Stock Average represents a welcome breather after the furious rally that began in November 2012. Investor sentiment remains bullish, by and large. We expect Japan’s equity market to perform well as long as the government's 10-year bonds move higher in anticipation of strong GDP growth. Investors looking to add exposure to this story should focus on sectors that will benefit from the government’s current economic initiatives.
DISCLAIMER: Capitalist Times, LLC is a publisher of financial news and opinions and NOT a securities broker/dealer or an investment advisor. You are responsible for your own investment decisions. All information contained in our newsletters or on our website(s) should be independently verified with the companies mentioned, and readers should always conduct their own research and due diligence and consider obtaining professional advice before making any investment decision. As a condition to accessing Capitalist Times materials and websites, you agree to our Terms and Conditions of Use, available here including without limitation all disclaimers of warranties and limitations on liability contained therein. Owners, employees and writers may hold positions in the securities that are discussed in our newsletters or on our website.