Yes, I know. Its pretty much been all doom and gloom out of Japan recently (except for the official spokespeople), so, brace yourselves, here’s a Japan bull.
Michael Novogratz, head of $5.5bn of macro hedge funds for Fortress Investment,
“We are still constructive on the Nikkei,” he said. “We are still in this hyper-volatile environment where positions are still being shed, but we think the Nikkei will make a new high at some point.” … Japan has been through bouts of foreign investor enthusiasm in the past, only for disappointment to set in. “We don’t think this is going to happen this time,” said Mr Novogratz. “Dangerous words, right? But our understanding and our intelligence suggests things are better.”
Says Novogratz:
- The government needs to steal Mr and Mrs Watanabe’s money quietly
- They’re going to do that through inflation
- They need to create inflation and yet they need to hold yields low
- Japan is one of the few places where people will suffer for the good of the masses
Japan bull Novogratz of Fortress says market purge will pass (Financial Times is gated)
