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Charlie Don't Surf

How Will Japan Irs Affect Japanese Shares

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With the liklehood that IRs in Japan are about to go up I'm wondering whether it's worth getting out of my Japanese trackers and funds sometime over the next week.

Is it likely the Japanese market will take a big hit because of this or is it pretty much a global thing in which case should I go cash for a while on everything??

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Guest tenant super

With the liklehood that IRs in Japan are about to go up I'm wondering whether it's worth getting out of my Japanese trackers and funds sometime over the next week.

Is it likely the Japanese market will take a big hit because of this or is it pretty much a global thing in which case should I go cash for a while on everything??

Well remember to take into account the strengthening effect on the Yen of increasing rates as well which may at least in part counterbalance falls in stock prices.

I've not idea what will happen, I have been mulling on the thought that there is a chance that the japanese consumer will realise that if deflation is dead then perhaps NOW is a prescient time to spend their savings. After all their consumer instinct has been suppressed for many years as punters waited to buy items as they became cheaper over time. I suppose I live in hope that they go on a shopping binge and then pre-emptive rises in rates will be in order !!

I have a lump of my pension fund in a far eastern jap dominated fund so I'll be interested in following this thread.

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I read a comment by Marc Faber a few months back that he believes inflation will be good for Jap equities. He reckoned the reappearance of inflation risk will cause many Japanese savers to move from cash to stocks. Rememeber, the high for the Nikei was 40,000 - 16 years ago ! He also reckons Taiwan is undervalued. So far his calls have been damn good, although bond yields don't appear to be spiking as much as he predicted.

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I read a comment by Marc Faber a few months back that he believes inflation will be good for Jap equities. He reckoned the reappearance of inflation risk will cause many Japanese savers to move from cash to stocks. Rememeber, the high for the Nikei was 40,000 - 16 years ago ! He also reckons Taiwan is undervalued. So far his calls have been damn good, although bond yields don't appear to be spiking as much as he predicted.

I read something along similar lines recently which said that in addition to the above, Japanese investors (pension funds etc) hold around $2500 Billion (IIRC) in other countries, almost equal to the foreign holdings of the rest of the world put together. If that starts to be repatriated then the effect on the Nikkei could be very positive.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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