Photo: Wikimedia Commons
The Japanese market rallied 2.86% last night.We’re getting used to huge moves each day, as the stock market has been on fire since early November.
The reason? After years and years of weak growth and deflation, new prime minister Shinzo Abe has promised ultra-aggressive easing on both the fiscal and monetary side of things.
But the task is not without huge challenges.
Bienville Capital Management has put together a fantastic guide to the state of Japanese stocks, the policy options available to the Bank of Japan and the ministry of finance, an explanation of why the yen could go much lower, and the huge structural challenges being faced by the economy.
It’s probably the best guide we’ve seen yet on the topic, by far.
Huge thanks to Bienville Capital for their permission to run their fantastic presentation.