Delivering Global Macro Investment Insights

DeSaque Macro Research

DeSaque Macro Research Limited was formed by Said DeSaque in April 2012 with the view to delivering global macro investment insights aimed at providing new ideas to clients.

Said DeSaque has over 26 years of experience working as a professional economist in financial services. Prior to establishing DeSaque Macro Research, Said held positions as Senior Economist at Robert W Baird and William Blair. He began his career as a graduate at PaineWebber in 1986, where he eventually became Head of the London Economics Department.

Said takes a very keen interest in international relations, along with their implications for economic development. His research interests include the economic transformation of China and its implications for global capital markets, particularly in the United States. He is a member of Chatham House in London.

The US economy and capital markets have historically been Said’s main focus of attention. He frequently presents his views to institutional investors in diverse geographic locations. In recent years, Said has also been carefully monitoring economic developments in Asia, particularly China and Japan.

Japanese Equities Underpinned by BoJ and Buybacks, but Longer-Term Issues Persist

Global Economist, DeSaque Macro Research

Said Desaque

Global Economist

Cross Asset Strategy

<ul>
<li>The previous high in Japanese equities occurred during a bubble economy, producing  stretched and unjustifiable valuations. Current valuation metrics are not displaying excesses and look relatively cheap versus the US.</li>
<li>The BoJ is tipped to remove negative interest rates in April. Labour shortages could, however,  delay capital spending, potentially prolonging recession, but interest rates will not be rapidly ramped up. </li>
<li>Foreigners remain upbeat about further corporate reforms enhancing shareholder value. Positive interest rates need not be bearish if better capital allocation in labour-stretched economy produces further improvements in structural profitability.  </li>
</ul>


The previous high in Japanese equities occurred during a bubble economy, producing  stretched and unjustifiable valuations. Current valuation metrics are not displaying excesses and look relatively cheap versus the US.
The BoJ is tipped to remove negative interest rates in April. Labour shortages could, however,  delay capital spending, potentially prolonging recession, but interest rates will not be rapidly ramped up. 
Foreigners remain upbeat about further corporate reforms enhancing shareholder value. Positive interest rates need not be bearish if better capital allocation in labour-stretched economy produces further improvements in structural profitability.  


A New Era for Japanese Equities? New Highs Without the Valuation Froth of 1989