It's so interesting.
The Bank of Japan hikes for the first time in almost 20 years.
And the reaction for Japanese equity traders and traders is kind of a
collective shrug. Do you think that narrative just
continues? Well, I think that's
a sign that the BOJ did a very good job of communicating that it didn't cause
shock and consternation in the market, and it indicated that it intends to be
very, very careful. I would say our own forecast is for 140
on the yen dollar in 12 months from now. So we'
re expecting a mild depreciation.
I think that's sort of around five or 6%.
But the thing that I'm sure you're very aware of is they have exited deflation.
And that is incredibly meaningful in a country where over half of household and
corporate balance sheets are basically bank deposits.
And they were they were those massive cash hoards that were accumulated
through two decades of deflation. But if we're exiting that deflation,
which I, I think emphatically, we can say, yes, we are.
Some of tha
t money is going to be moving into productive assets, and that would
include equities. And the good news in Japan is with over
4000 listed companies, there's there's many, many to choose from.
And there are companies in Japan that have been outperformers even versus the
S&P over the last 20 years. The topics, of course, looks lousy over
that time period, but you can find lots of companies that have had shares that
have done well because they have approaches that are in the in the
mid-teens.
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