I've been tracking Japan intently since the Bank of Japan decided to follow in the Federal Reserve's footsteps to target inflation and wanted to bring up an important point for those who are of the opinion (as I am) that Japan's stock market may begin to outperform. First, let's go over the reasoning. A few weeks back the Bank of Japan not only expanded its asset purchases (their own form of Quantitative Easing), but also explicitly stated that they wanted to achieve 1% inflation. The policy change may be just enough to get animal spirits in Japan's markets moving again, as it could result in increased inflation expectations in the world's third largest economy. (SeekingAlpha)
I've been tracking Japan intently since the Bank of Japan decided to follow in the Federal Reserve's footsteps to target inflation and wanted to bring up an important point for those who are of the opinion (as I am) that Japan's stock market may begin to outperform. First, let's go over the reasoning. A few weeks back the Bank of Japan not only expanded its asset purchases (their own form of Quantitative Easing), but also explicitly stated that they wanted to achieve 1% inflation. The policy change may be just enough to get animal spirits in Japan's markets moving again, as it could result in increased inflation expectations in the world's third largest economy. (SeekingAlpha)