Posts Tagged ‘ japan ’

UK Firm Pensions: Is the End Nigh? « BCCJ Acumen – The Magazine of the British Chamber of Commerce in Japan

My article on UK pension and the risks facing them , And how individuals can protect themselves .

Clink on the below link to have a look .

UK Firm Pensions: Is the End Nigh? « BCCJ Acumen – The Magazine of the British Chamber of Commerce in Japan.

“Abenomics ” the winners & loosers

for every action there is always an equal and opposite reaction

Newton said that in 1687 and I can say that that is true today of the effect of “Abenomics” .Don’t get me wrong it’s exactly what Japan needs to kick start its economy but this will effect Japan’s biggest and also faster growing demography the “retired or silver saver as they known here ”

To understand this you need to understand inflation & deflation :
•inflation – increase in prices ( money has less purchasing power”
•deflation -prices fall ( money has more purchasing power )

So in a deflation environment which Japan has been for in the last 20 years “cash was king ” elderly saw their income power increase every year , with Abenomics this would end and this purchasing power would fall . The retired in Japan have assets in excess of $7 trillion ( that’s nearly as much as the GDP of UK ,Germany & half of France !)

The winners will be the stock market , forex and in the Japan Economy .The losers will the retires and people on fixed income ,

Personally I hope Abenomics will succeed Japan needs it, but it all comes down the “silver savers” will they allow it?

No one is bigger than the market forces , but the silver savers is quiet a force,

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High-net-worth investor confidence at three-year high, deVere finds

In my day to day work day I have seen this also , clients are getting more bullish . Even in Japan , I am seeing even Japanese investor becoming bullish , Abenomics is a key factor here .

All I can say is , Welcome back .

Article below , please click on the link to see full article , I just copied it here .

http://www.fundweb.co.uk/high-net-worth-investor-confidence-at-three-year-high-devere-finds/1067460.article

Some 53 per cent of high-net-worth clients of the deVere Group say they are bullish on their outlook for the next 12 months, according to the firm’s annual survey.

This figure shows an increase from the previous surveys in 2012 and 2011, with 49 per cent and 44 per cent of investors feeling confident respectively.

Nigel Green, deVere Group’s chief executive, feels this increase can be explained by easing uncertainty on issues such as the eurozone crisis and the US fiscal cliff and that this confidence could lead to a change in investment choices.

Green says: “These people understand that, thankfully, we’ve left the darkest days of the economic crisis behind and that in order to safeguard their wealth against inflation they now need to reduce their exposure to ‘safe’, low-yield investments, such as government bonds, and increase their holdings of higher risk/higher return investments.”

The firm’s survey covered 311 clients who have investable assets of more than £1m

Bank of Japan ready to declare war on deflation ???

Is the Bank of Japan ready to declare war on deflation ? I believe so , Kuroda said last week he would take aggressive action to stop deflation and to increase the growth of the economy .
I personally believe he will look at around $1billion a DAY ! At the moment the BOJ has plans for $1billion every 2 days starting next year ,
His comments last week gave us the impression he wants action now rather than later !

“It would be natural for the BOJ to buy longer-dated government bonds in huge amounts,” Kuroda said in a confirmation hearing in parliament .

I personally see no real change until the up and coming election has been won by Prime Minister Abe . Reason for this is that Japan have been sheltered from high energy price , commodity and food price and residents in JAPAN haven’t seen their bills increase as most other G8 countries .Weaker Yen means higher prices for consumer ( voters ) and that means no votes !

Kuroda has still not been confirmed as the new Bank of Japan governor but the markets have already taken this as a given , Nikkei goes up 2+/-% in a day.
A 1% increase means the Nikkei adds around $23billion !!!

I see Abe drawing up a battle plan for war , at the moment he is just appointing his “generals” , summer time I can see the full war!

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The Yen – Currency War or just Growth ?

Prime Minister Abe has survived a meeting with US President Obama without having his policy criticised. ‘Abenomics’ is seen in Japan as a way of growing the economy not devaluing the currency, if the Yen weakens that’s a bi product. Prime Minister Abe appointed key people to lead the Bank of Japan Kuroda-sama as Governor, a person liked in Japan but also respected internationally, which is key if Japan is going to succeed.
The Yen has fluctuated at times quite widely between 90-95 Yen range over 5% swings.
Now it seems so much sentiment has been placed on ‘Abenomics’ what’s going to happen next??
At least now we have a clear plan for getting out of deflation environment and into a true inflation target.
On the other hand we have no evidence of structural change to accommodate this. Personally I still feel people are remembering the BOOM and aftermath of the last surge and slightly cautious from jumping in.
But I do feel there has been a huge shift in people minds and the attitude is ‘What if this all true? Can Japan go through another BOOM?

Let’s hope so, I look forward to seeing what happens .
Gambette Kudasai

Tags :#abenomics #abe #yen #japan

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