The Yen must not been seen as a save haven
From his perspective as a quant driven fund manager he gives his view on subjects like the sentiment on Japan and China, relatively cheap H-shares, the gyrations in the commodity space.
One big topic remains the attempts at reflation by central banks. But looking at Japan, Kuroda has done all he could (and more) but the central bank cannot do it alone, the Government need also take action and implement reforms. For Japan, the additional problem is the Yen still is perceived a safe haven. One should actually wonder why!
In general, reflation of mostly asset prices looks not to be working that well, it was only past February we were in state of panic over deflation. And the idea behind rising asset prices and the wealth thereof trickling down to the rest of society needs revision. In general, the touted trickle down is just not occurring.
So with on one hand central banks reaching the end of their possibilities to reflate and on the other hand, potential inflationary pressures in the US forcing an earlier rate hike, there is to be volatility ahead!
Watch the discussion of Mr. Hekster and Rishaad Salamat on "Trending Business":
Published by Ralph van Put
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