Japan: A ten-fold return in five years or a country bankrupt by 2020?

Neptune's Chris Taylor has predicted ten-fold growth in the Japanese market in the coming years, as the government is forced to push through reforms to avoid bankruptcy by 2020.

The manager of the £237m Neptune Japan Opportunities fund said a falling yen and Shinzo Abe’s aggressive package of reforms is crucial to drive Japan to a position of stability. “Japan is normalising after 30 years in the doldrums,” he said. “If this works, it will go on for another five to seven years and investors could make ten times their money.” As long as investors hedge the yen exposure on their portfolios, the market can bring astounding returns in the medium term, the manager said. “The government aims to double the monetary base over the next two years, which would halve ...