Why writing off Japanese equities is 'unwise'

Alasdair McKinnon of The Scottish Investment Trust

Alasdair McKinnon of The Scottish Investment Trust

Picture the scene. Concerned about the strength of the US dollar, President Donald Trump meets with world leaders to seal a deal to further US interests.

When we consider his recent comments bemoaning US competitiveness, this scenario could have occurred yesterday.  However, the deal in question - the Plaza Accord - was signed in 1985.  That accord supercharged demand for Japanese assets, triggering a bubble that would have lasting consequences when it eventually burst. The 'icing on the cake' in Japan The collapse of this bubble was the beginning of a long-term decline in the yen, leading to Japan's 'lost decade', in which the economy stalled and the stockmarket flagged.  While both have recovered from those lows, the repercu...

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