By Nick Gartside, portfolio manager of JPMorgan Funds – Global Bond Opportunities fund Mention Japan to an economist and they’ll tell you about deflation, debt crises, demographic pressures and decades lost in economic stagnation. In fact, the ingredients of every policymaker’s nightmare scenario and In our latest Quarterly Investment Perspective, Chief Investment Officer Rebecca Patterson examines developed Europe and the U.S. through a “Japanification” lens to better understand what may evolve in these economies and the resulting investment implications. Europe’s relatively liberal attitude to immigration – compared with Japan, at least – may help delay a demographic time bomb, but only for so long. If, as many fear, Japanification represents the new normal for European economies, a number of challenges will emerge. The eurozone looks like it entered a similar trend of late, said ING economists Carsten Brzeski and Inga Fechner, one day ahead of the European Central Bank’s next policy update. The other message from Europe, with a backdrop of negative yields, is not only what bonds investors should be buying but how to invest in fixed income markets with the growing percentage of negatively yielding bonds. That leaves traditional fixed income total return prospects modest in the best case, and more likely negative. Europe’s situation has long left it open to comparisons with Japan in the 1990s. In a report on Monday, ING lists similarities including an increase in government debt, a buildup of bad loans at The term 'Japanification' has been used for economies that have been developing similar symptoms as Japan did in the 1990s in the past cycle. Since the financial crisis, economists have found that
28 Apr 2019 Recently, fears for an “European Japanification” have regained by Richard Koo ) that lowered investment opportunities contributing to a 18 Mar 2019 Europe is suffering from something worse… What are the symptoms of Japanification? As illustrated in its most famous eponymous example, Japanification He has over 30-years experience of investment bank and fixed 18 Jul 2019 Europe just endured one decade of economic stagnation. If it doesn't act soon, it could face another.
With Japanification prominently in evidence in the bond markets, it is reasonable for investors to question whether Europe may in fact succumb to Japan’s legacy of moribund growth and persistent By Nick Gartside, portfolio manager of JPMorgan Funds – Global Bond Opportunities fund Mention Japan to an economist and they’ll tell you about deflation, debt crises, demographic pressures and decades lost in economic stagnation. In fact, the ingredients of every policymaker’s nightmare scenario and In our latest Quarterly Investment Perspective, Chief Investment Officer Rebecca Patterson examines developed Europe and the U.S. through a “Japanification” lens to better understand what may evolve in these economies and the resulting investment implications. Europe’s relatively liberal attitude to immigration – compared with Japan, at least – may help delay a demographic time bomb, but only for so long. If, as many fear, Japanification represents the new normal for European economies, a number of challenges will emerge. The eurozone looks like it entered a similar trend of late, said ING economists Carsten Brzeski and Inga Fechner, one day ahead of the European Central Bank’s next policy update.
18 Jul 2019 Europe just endured one decade of economic stagnation. If it doesn't act soon, it could face another. 30 Oct 2019 have failed and that Europe is in danger of 'Japanification' – entering ECB buying 90% of newly issued European government bonds over 12 Apr 2019 That's the case in Japan, Europe, and soon the US. demand for liquidity as corporate debt goes from investment grade to junk seemingly en
18 Jul 2019 Europe just endured one decade of economic stagnation. If it doesn't act soon, it could face another. 30 Oct 2019 have failed and that Europe is in danger of 'Japanification' – entering ECB buying 90% of newly issued European government bonds over 12 Apr 2019 That's the case in Japan, Europe, and soon the US. demand for liquidity as corporate debt goes from investment grade to junk seemingly en 15 Aug 2019 FILE PHOTO: The skyline with its banking district and the European Central is also at the brink of a recession and this is unnerving investors as this 4) JAPANIFICATION OF EUROPE OR EUROPIFICATION OF JAPAN?