Visitors look at screens displaying stock indices at the Tokyo Stock Exchange in Tokyo, Japan, on Tuesday, July 24, 2018.
Akio Kon | Bloomberg | Getty Images
Market strategist Jesper Koll believes that Japan’s Nikkei 225 could reach 40,000 points in the next 12 months, citing positive fundamental indicators.
He attributes his optimism to the rebound in business confidence and a supportive fiscal policy in Japan.
If this prediction comes true, it would mean breaking the all-time high of 38,195 points achieved on December 29, 1989, during the real estate bubble in Japan.
The collapse of the property market led to a crash in equity and land prices, resulting in a prolonged period of low economic growth for Japan.
Koll, a market strategist at Monex Group, highlights that Japanese CEOs are now using retained earnings to invest in their businesses, which contributes to his positive outlook.
He confidently states that there’s no reason why the Nikkei wouldn’t surpass 40,000 points in the next year.
Japan’s central bank has maintained an ultra-loose monetary policy for over 20 years.
When asked about the possibility of the Bank of Japan tightening its monetary policy, Koll questions the need for such a change without a compelling reason.
He believes that BOJ governor Kazuo Ueda is taking a cautious approach, monitoring economic data and waiting for indications that deflation has been overcome and CEOs are willing to invest in people and capital expenditure.
Koll speculates that interest rates won’t be normalized by the BOJ for at least six to nine months.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
