bullish

Japan: The Winner from This Year's Spurt of Inflation

464 Views06 Jul 2022 03:55
2% inflation is a boon to Japan's fiscal balance & public debt/GDP. Despite jawboning, the JPY will tend to depreciate, making Toyoto & exporters attractive. Index PE of 14x far below 3yr mean of 21x.
Boomeranged on Mon, 7 Aug 2023 19:18
13 months ago, Japan was attractive as inflation had returned but wages had not started rising, but were eventually expected to. Now a wage settlement provides 3% increases for most workers who have seen no annual salary increase in their working lives! Crucially, Japan will experience about 5% nominal GDP growth this year, and improved terms of trade. Govt & corporate revenue will strengthen.
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