Scott McGlashan, manager of the £685m JOHCM Japan fund, questions why cyclical stocks have stood on the edge of the dance floor while 'dull' bond proxies are strutting their stuff.
Abenomics is indeed working. A tightening labour market - there are now more job offers than applicants - is sending wages up across the board. More money in employees' pockets is essential for a self-sustaining economic recovery. Yet despite this welcome news on wages and largely positive economic newsflow out of Japan this year in general, cyclical stocks have had to stand on the edge of the dance floor while dull, defensive bond proxies, long on earnings predictability and short on earnings growth promise, have been strutting their stuff. Nonetheless, while the bond proxy bubble h...
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