Summary

• Japan’s recovery from the “lost decades” of deflation and meager growth has been an on-again, off-again phenomenon.
• We believe that Japan should reach the “cruising altitude” phase this year and beyond, with a revised code to push companies to make better use of their cash and other assets in helping drive long-term growth.
• It bears noting that the Japan equity market, even with recent volatility, has come far in a short period of time - raising a key question of whether it may be “too late” for investors to become involved.

By Kei Okamura

Don’t let recent market volatility distract from the long-term fundamentals. We think another stage of growth is likely on its way.

Japan’s recovery from the “lost decades” of deflation and meager growth has been