Throughout its history, WisdomTree has created innovative equity Indexes that give investors unique exposure to both broad and niche parts of global equity markets. As a result of that diversity, sometimes explains how the top-performing—as well as the worst-performing equity markets can illustrate some of the key trends in 2015.
Recently, WisdomTree Japan CEO Jesper Koll wrote that he expects Japan to add to its monetary easing stimulus package at the upcoming January 28 Bank of Japan (BOJ) meeting. Moreover, the yen, on a trade-weighted basis, has been increasing steadily since June 2015 and at this point has erased all the weakness that followed the BOJ’s easing program announced on October 31, 2014.
We remain convinced that Japanese risk assets—equities and real estate—are on track for a multi-year bull market. Our conviction is based on two essential pillars. The first one is our view that Japan’s private sector has begun to focus on capital efficiency as a principal driver of corporate strategic focus. The second one is that Japanese policy makers are relentlessly focused on ending deflation and creating a pro-growth domestic macro-economic backdrop.
Jeremy Schwartz recently spoke with Jawad Mian, editor of “ Stray Reflections,” and Richard Clarida, global strategic advisor to PIMCO and economics professor at Columbia, regarding their thoughts on policy action by the Federal Reserve (Fed), the Bank of Japan (BOJ) and the European Central Bank (ECB), as well as global implications for investing. Below I outline the key takeaways.
It is the time of year when economists and strategists present their forecasts and baseline scenarios for the year ahead, 2016. Quantitative forecasts are based on de facto probability models, and qualitative scenarios are based on, well, a combination of experience and common sense. Either way, most methodologies leave little room for a discussion of true outliers and surprises.