Land of the rising funds

Japan finds itself at an inflection point, with equities finally back up to 1990 levels, and inflation on the rise after decades of deflation. But impending policy decisions by the Bank of Japan (BOJ) will test the market’s resilience.

Lynk Lynk
Aug 22, 2023 - 21:01
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Land of the rising funds

Japan finds itself at an inflection point, with equities finally back up to 1990 levels, and inflation on the rise after decades of deflation. But impending policy decisions by the Bank of Japan (BOJ) will test the market’s resilience.

August 22, 2023

As of summer 2023, Japan’s Nikkei 225 index and Tokyo Stock Price Index Topix are savouring 33-year highs, and the market’s consumer price index CPI of 3.5% indicates that it has finally broken free of decades of chronic deflation and limited growth.

Warren Buffet’s recent endorsement of  Japanese equities adds to the positive sentiment. On a visit to the country in April, he commended the core business strategies of the country’s five largest trading companies sogo shosha, comparing them to his globally acclaimed investment firm, Berkshire Hathaway.

“They are really so much similar to Berkshire. They own a lot of different things,” he told media...

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