Columbia Threadneedle Investments case study

Contemplating the death of ‘Abenomics’

Published by : Columbia Threadneedle Investments

Alex Lee, Portfolio Manager

Prime Minister Abe has overseen unprecedented political stability since taking power in 2012. While we believe Abe will remain in power, we will be watching the LDP's election performance and Abe's subsequent approval rating closely.

If Abe were ousted, this would no doubt spark short-term volatility, with monetary conditions tightening, an appreciation in the yen and falling equity markets. However, this could be an opportunity to buy high quality companies on attractive valuations as strong global growth, improving corporate governance and rising domestic productivity make us bullish on Japanese equities from a medium-to-long-term perspective.  

 

Published:17 October 2017

Business Area: Equities

Type: Portable Document Format (.pdf)

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