Bloomberg (via The Japan Times) posted an interesting article on the state of the Japan economy and the weakening yen's contribution to the booming tourism industry. In addition, investment strategists looked into their respective crystal balls (pun not intended) to see what lies in store for the future.
It begins with:
SINGAPORE/HONG KONG – Two leading investment strategists have offered a rare bullish view of the market, saying Prime Minister Shinzo Abe is achieving his goal of reviving the economy by weakening the yen, and there’s more to come.
Stefan Hofer, chief investment strategist in Asia at BNP Paribas Wealth Management, said the yen may drop about 8 percent to 130 per dollar over a year, boosting earnings that have driven an equity rally.
Jay Glasser, a former Citigroup Inc. trader who started his own investment office, sees 140 to 160 by year-end, helping his bets on yen losses and gains in Japan’s bonds and stocks. Those forecasts compare with the median for a weakening of about 4 percent to 125 per dollar in a Bloomberg survey of analysts.
To read more, go here.