> Focus on interest rates. The Japanese Government Bond (JGB) yields have been climbing as investors regain confidence in the country. This poses a problem as the Japanese have been accustomed to cheap money.
And the rise goes against Kuroda’s growth strategy to keep interest rates low and stable to boost borrowing and investment.
US Federal Reserve chairman Ben Bernanke also spooked markets as he revealed that the Fed could start to taper back its monthly bond purchases of USD85bn within the next few months.
>> REITs over-owned! This validates one of my key thesis during the current marketing round on the REITs – it is a highly over-owned sector and a potential interest rate hike would send the stock prices of the REITs falling.
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