The many virtues of the yen, the rich world’s cheapest currency
Japan has low inflation, cheap stocks and a strong international balance-sheet
THE LAST shall be first, and the first, last. An emerging theme in capital markets is that securities that generated bumper returns in the era of low inflation, sluggish demand and zero interest rates—think American tech stocks—are under pressure, while assets that fared horribly in the 2010s (oil, mining and bank stocks) are holding up well. If it is cheap, inflation-proof and formerly unloved, capital is now increasingly drawn to it.
This article appeared in the Finance & economics section of the print edition under the headline “The sun also rises”
Finance & economics February 26th 2022
- The economic consequences of the war in Ukraine
- America’s tariff wall on Chinese imports looks increasingly like Swiss cheese
- Despite bulging debt everywhere, the IMF is struggling to be helpful
- Gold demand has surged in India
- The battle to modernise Italy's corporate governance
- With maverick policies, Turkey cannot hope to bring down prices
- The many virtues of the yen, the rich world’s cheapest currency
- How to avoid a fatal backlash against globalisation
From the February 26th 2022 edition
Discover stories from this section and more in the list of contents
Explore the editionDiscover more
The great-man theory of Wall Street
Why finance is still dominated by bold individuals
Hong Kong’s property slump may be terminal
Demographics and geopolitics will make a recovery harder
Why everyone wants to lend to weak companies
An unanticipated side-effect of Donald Trump’s election victory
American veterans now receive absurdly generous benefits
An enormous rise in disability payments may complicate debt-reduction efforts
Why Black Friday sales grow more annoying every year
Nobody is to blame. Everyone suffers
Trump wastes no time in reigniting trade wars
Canada and Mexico look likely to suffer