Nippon Capital AM: Although the Nikkei 225 is trading at 15 year highs, the rally may be set to continue for some time yet.
Osaka, JAPAN – According to Nippon Capital AM (Nippon Capital Asset Management J-LLC), the bull market in Japan’s benchmark stock index, the Nikkei 225 Average, has seen its value register an increase of over 135% since the end of 2012 and, according to Nippon Capital AM, the trend is likely to continue.
David Silver, Executive Vice-President of Portfolio Management at the firm, oversees the management of over $2 billion in client assets. He suggests that the Bank of Japan’s absolute commitment to Prime Minister Shinzo Abe’s ‘Abenomics’ policies will result in more money finding its way into the stock market. The central bank is increasing base money at an annual rate of 80 trillion yen ($660 billion) in an effort to drag Japan out of a two decade-long period of stagnation
“Not many will disagree that the BoJ’s experiment with massive quantitative easing is risky but Shinzo Abe’s decision to take the country back to the polls at the end of last year to seek a mandate to delay the introduction of another sales tax hike also gave him tacit approval of his controversial policies,” explained Silver.
Nippon Capital AM explains its commitment to Japan and Chinese equities citing broad expectations of continued stimulus from central banks in both countries. “We don’t feel as bullish on US equities particularly in the absence of the monetary stimulus that drove them to their current values,” said Charles Worth, the firm’s Executive Vice-President and Co-Chief Investment Officer.
The firm has told clients to expect the Bank of Japan to remain vigilant over the strength of the yen even as the US Federal Reserve continues to agonize over the timing of the first increase in the Fed Funds rate in almost a decade. It warns that economic data emerging from the US could see the Federal Reserve postpone any rate hike until 2016, thereby weakening the US dollar.
About Nippon Capital AM
Nippon Capital Asset Management J-LLC is a ‘fee only’ financial advisory service. This way you can be assured that we are acting in your best interests at all times. Other services have ‘special’ relationships with banks and financial institutions, from which they are paid a negotiated percentage of any deals that they broker on their behalf. These third party arrangements distort how investments should be dealt with presenting a clear conflict of interest. We do NOT operate in this manner and offer total commitment to our valued clients, without receiving any compensation from third party sources in the industry.
Nippon Capital Asset Management J-LLC operates under the strict guidelines of the Fiduciary Standard of Care (FSC). We are bound to a code of conduct that holds the clients interest in paramount position.
Contact Nippon Capital AM:
1-1-43, Abenosuji, Abeno-Ku,
Osaka-Shi, Osaka Abenoharukas