We are hearing increasing calls that ‘Abenomics’ — Japan’s Prime Minister Shinzo Abe’s strategy for economic revival — has failed. We wish to challenge those voices.
With all the major regions of the global economy growing in synch, investors are shrugging off political uncertainty. Equities have been buoyant, particularly in the US technology sector, where rising valuations are the focus of our lead article “Great tech-spectations”.
Ever since Prime Minister Shinzo Abe came to power in 2012, bringing with him his ambitious “three arrows of reform”, investors have faced the question of when — or whether — to increase their exposure to Japan. Has the moment finally arrived or are there still clouds on the horizon in the Land of the Rising Sun?
Ed Smith, Rathbones asset allocation strategist, spoke at ‘Brexit and 100 days of Trump’, an event in our Liverpool office on 3 May. Here is a summary of Eds presentation.
While financial markets in the developed world responded positively to the election of Donald Trump, the reaction in emerging markets (EMs) was mostly negative.
First the EU referendum, then the election of Donald Trump. In 2016, investors were surprised by events that pollsters and other experts said wouldn’t happen, although on both occasions stock markets swiftly recovered before reaching new highs.
Despite widespread calls for fiscal stimulus, the Chancellor confirmed the government will continue with austerity, albeit a little less aggressively.
Following the election of Donald Trump as the next President of the United States, investors should take note of the hidden costs of protectionism.
One of the most overlooked risks for financial markets over the next decade is the potential for the US to impose tariffs on imports. This risk is greatest if Donald Trump wins on 8 November. Yet our analysis suggests conditions are ripe for protectionism to have broader popular appeal: less extreme politicians than Mr Trump could use it to secure votes.
