Over the past few years, many investors have avoided developed international equity markets for a variety of reasons: anemic growth, disappointing economic data and geopolitical uncertainty. Brian Manby discusses reasons why investors should be optimistic about international equities again.
Prime Minister Shinzo Abe’s Japan is a forward-looking, pragmatic bastion of stability in an increasingly uncertain world. The recent cabinet reshuffle cements the unique position that Japanese politics and policymaking occupies relative to most other democratically elected governments.
Japanese Prime Minister Shinzō Abe and his ruling coalition won a very comfortable majority, but fell short of gaining the two-thirds supermajority required for fast-track constitutional reform in Sunday’s Upper House election. Jesper Koll outlines the key signposts and challenges immediately ahead for Japan.
Japan’s gross domestic product report from last week was stronger than expected, up 2.1% quarter over quarter and annualized, against expectations for a small decline. Jesper Koll discusses the Japan equity investment implications amid the macroeconomic and political environments.
President Trump’s upcoming visit to Japan at the end of the month is very likely to bring a successful resolution of a U.S.-Japan bilateral trade agreement. If we get similar positive news from the U.S.-China trade front, Japan in general and exporters in particular are likely to outperform. Jesper Koll elaborates.
2019 is likely to be a good year for Japan. However, there are some outlier scenarios investors may worry about. Improbable as they may seem, any movement toward their far-out direction will force a true about-face in the current consensus. Jesper Koll outlines 10 potential surprises for Japan in 2019.
The key issue for Japan’s 2019 outlook is not the hike in the consumption tax coming October 1 but the determination of “Team Abe” to present a new, urgent and credible structural reform agenda. Herein lies the key to unlock Japanese markets out of the current “value trap” consensus.