Return of inflation sets up major Japan rebound

Top industry managers believe return of inflation after years of deflation will force investors out of bonds and back into equity markets

Managers are predicting a bold recovery for Japanese equities following the return of inflation and improved corporate governance. Several of the region's best-known managers claim the country is poised for a strong rebound after innumerable false starts and endless investor disappointments. In general, groups believe Japanese equities appear cheap, the economy is functioning well and the corporate sector is strong.  They claim that as inflation climbs, investors are more likely to abandon fixed interest and will shift into the country's long-ignored equity market. JO Hambro Japan m...