Look to the East

ENAR

As the yen continues to weaken and the rally of Japan’s stock index, the Nikkei, persists, it is time to start adding exposure to its stock market. With the country’s current account surplus worsening, it is getting more difficult to finance the budget deficit of around 9 percent of gross domestic product, coupled with a sovereign debt amounting to 240 percent of GDP — both figures being roughly double that of Lebanon’s equivalent statistics.  Bonds…Japanese bonds Japanese establishments have always been the biggest and most reliable buyers of Japanese government bonds (JGBs), but they have recently been conveying that they lack the funds to keep buying at the scale of previous years. The Bank of Japan needs to step in and buy government bonds with newly printed yen so the supply of yen will have to rise drastically in the coming few years. This would lead to price levels in