There is wide debate regarding the effectiveness of Abenomics, but we think that focusing too much on the economic aspects of Abenomics may be missing the point: An equity investment in Japan is an investment in companies rather than economic growth.
WisdomTree has been managing Japan-specific ETFs for nearly 10 years. The key to success has been an ability to combine creativity to capitalize on Japan’s most salient investment themes with flexibility to enhance and expand the toolkit as conditions evolve.
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.