Potential of government measures not fully factored into equity prices

JAPAN

As I see it we have entered the last stage of the current post-contraction economic recovery phase.

How will this decline in the pace of recovery affect Japan? Does this mean the Japanese market will go sideways if foreign demand decreases going forward? While that is a possibility, the potential positive impact of recent domestic changes deserves more attention. The most significant recent change was the election of September 2009 that brought the first actual shift of power in post-war Japan. The Japanese public supported the “putting ordinary peoples’ lives first” policy of the Democratic Party of Japan (DPJ), and in the first actual power shift in post-war Japan, the DPJ administra...