Reflections on economic and social trends that impact investor sentiment and behavior.
Selected Document
Sayonara Deflation
Western | May 8,2013

Portfolio managers Andrew Comack and Hiroyuki Kimura offer insights on Abenomics

  • Global investors have been conditioned to take notice of bold and innovative central bank policy.
  • Domestic Japanese investors are skeptical that these policies will work, but should not underestimate Bank of Japan (BoJ) Governor Haruhiko Kuroda's resolve
  • Aggressive expansion of the BoJ balance sheet could facilitate further yen weakness, but the trend will be slower. Investors might consider combining relative volatility strategies with directional views
  • Global bonds could continue to benefit from Japanese investors increasing allocations to foreign bond markets