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In defense of quality

February 17, 2016

In this new issue of Investorama, quality is to be regarded as a success factor and volatility is a friend. Furthermore we take a look at Japans’ reform program. The allegedly small "the number" becomes enormous in connection with the financial crisis.

 

The financial markets have put in a stellar performance since March 2009, and not only the equity markets, but the credit and government bond markets as well. The key driver of this trend has been the extremely expansionary, at times creative monetary policy of the main central banks.

Critics have complained that this unprecedented flood of money was merely postponing the need to find a solution to structural problems such as the high level of government debt. In the end, it is counterproductive, they argued. For their part, monetarists emphasized the fact that unconventional monetary policy measures were and are needed to prevent a deflationary depression with much more drastic repercussions. Investors, however, are not interested in theories or dogma. They are looking for pragmatic recommendations. What are our recommendations for you?

Japan on track with its reform program

The reform program of Japan's prime minister Shinzo Abe is now in its fourth year – so it's time for a mid-term reassessment. With the strategic direction set and political hurdles cleared, attention should now increasingly be turned to implementing structural reforms. With a general election not due till 2018 and an economic tailwind blowing, he might just pull it off.

Our money tale discloses how the writings of German physician and explorer Engelbert Kaempfer dominated Europe’s perception of Japan in the 18th century. Read "The number" to find out why 200 can be an enormous number.

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