Japanese Equities Might Be the Most Attractive Asset Class for Years to Come.

August 24, 2023


Despite years of persistent deflationary pressures, a confluence of factors including extreme monetary stimulus through Quantitative and Qualitative Easing (QQE), the implementation of Yield Curve Control (YCC), a pandemic-induced fiscal splurge and an energy price shock, have collectively driven inflation in Japan to levels not witnessed in decades. Moreover, the enduring influence of the Third Arrow of Abenomics continues to reshape corporate governance and instigate reforms, leading to efficiency gains and increased shareholder returns through rising dividends, and increasingly common share-buyback programs.

The prospect of an end to YCC and QQE, along with the potential for a sustained uptick in wages and the ongoing drive for corporate reform, act as catalysts that could unlock a substantial appreciation of the Japanese Yen and reinvestment into the local economy, in a market we believe are structurally mispriced. This presents a rare opportunity for long-term investors. In particular, active managers with a sustainable competitive advantage.


Whether the Bank of Japan have the ability to hit its inflation target in the face of sustained deflationary pressures, a massive pile of debt and evermore negative demographics, is a question most market participants and bankers might have a quick ponder…and the move on swiftly to more important matters. Indeed, for years Japan has been stuck in a deflationary glut that has become part of everyday life and ingrained in the mindset of Mrs Watanabe.

But times they are a changing! Or so it seems…

To continue reading… please download the PDF above to access and read the full article.

Download Now
Download Now


For further information on any of our services, or if you would like to arrange a meeting with an investment manager to see how we can work with you, please get in touch.

LeifBridge Investment Services
Shard Capital Partners
Floor 3, 70 Saint Mary Axe
London, EC3A 8BE
United Kingdom

Telephone: +44(0)20 7186 9900
Email: Info@Leifbridge.com


We try to ensure that the information provided is correct, but we do not give any express or implied warranty as to its accuracy. We do not accept any liability for errors or omissions. The content of this brochure is for guidance purposes only and does not constitute financial or professional advice.


LeifBridge is a trading name of Shard Capital Partners LLP. Shard Capital Partners LLP is a limited liability partnership, registered in England with registration number OC360394. Shard Capital Partners LLP Registered office:36-38 Cornhill, London, EC3V 3NG.. Shard Capital Partners LLP is authorised and regulated by the Financial Conduct Authority in the United Kingdom, reference number 538762.

This document is provided for information purposes only and is intend for confidential and sole use by the recipient. It is not to be reproduced, copied or made available to others. The information set out in this document does not constitute investment advice or a personal recommendation. The views expressed in this document are not intended as an offer or a solicitation, to purchase or sell any security or other financial instrument, credit or lending product or to engage in any investment activity.

Past performance is not a guide to future performance. It is important that you understand that with investments, your capital is at risk. The value of investments, as well as the income derived from them, can go down as well as up and investors may get back less than the original amount invested. It is your responsibility to ensure that you make an informed decision about whether to invest with us, based on your particular objectives. If you are still unsure if investing is right for you, please seek independent advice.

The information and opinions expressed within this document are the views of (the company) and are based on information we believe to be reliable, but we do not represent that they are accurate or complete, and they should not be relied upon as such. Any information provided is given in good faith but is subject to change without notice.

No liability is accepted whatsoever by (the company) or its employees and associated companies for any direct or consequential loss arising from this document.