March 31 marks the end of Japan’s fiscal year, making it a very important point from which to gauge how Japanese stocks are behaving and, ultimately, whether Abenomics is having any real impact.
Last week Professor Jeremy Siegel and I chatted with Mark Yusko, Chief Investment Officer of Morgan Creek Capital, about his thoughts concerning extended U.S. valuations and global markets that may offer abundant potential beyond that of the United States.
At the Japan Society event “The Sun Also Rises?: Japan’s Potential in the Post-Crisis Global Economy,” we heard panelists talk about how they thought that Japan could incentivize growth in productivity. One area of note was that Japan’s largest industrial employer shifting from seniority-based pay to pay for performance was a very big step.
On March 31, 2015, Toyota was the largest company in Japan—nearly twice the weight of the next largest firm, Mitsubishi UFJ, in the Tokyo Stock Price Index (TOPIX). However, some might be surprised to learn that Toyota has been operating in the U.S. for 58 years, has 10 plants and has produced more than 1.3 million cars.
Recently, we attended a panel discussion at the Japan Society entitled “The Sun Also Rises?: Japan’s Potential in the Post-Crisis Global Economy.” The discussion was compelling and offered some of the most bullish and optimistic arguments we have heard in favor of looking at Japan today.