Abe Government's determination to quash deflation
My thanks to a subscriber for this interesting report by Kazuhiro Miyake for Daiwa Securities. Here is a brief sample
There are a number of upcoming events that could affect Japanese stocks. Most investors are somewhat skeptical about a turnaround in Japanese stocks. Foreign investors (traditional long-term investors) have an especially big influence, and up to now they have had little confidence in the Japanese government and the BOJ and they are far from certain that
Japanese stocks, which have been mired in a prolonged bear market, have reached a major turning point. There are four events that could conceivably improve the situation:
David Fuller's view Both domestic and foreign investors largely
shunned Japanese equities because they had been serial underperformers for most
of the previous 22 years.
This has now changed since the yen fell (shown inversely against the US$) and the Nikkei 225 sprang to life as the fundamental change in policies became apparent. The result has been largely one-way traffic into the Japanese stock market. It has the potential to continue for the medium to longer term, albeit at a somewhat slower and more rangy rate, and Fullermoney will closely monitor the technical and political action throughout this important move.