The Japanese yen hit a multi-year low of ¥125 to the dollar in June last year, a significant 40% decline from its peak of around ¥75 in October 2011. As a result, the weak Japanese yen drove corporate earnings to record highs in the last few years.
Financials appealing to managers
A so called 'dash for trash' could see investors that are focus on 'quality income' in US markets underperform in the coming months, according to Stephen Thornber, fund manager at Columbia Threadneedle.
When Abenomics was launched and large-scale QE introduced to much fanfare a few years ago, the bold message communicated was we could expect monetary policy easing on a scale not previously seen.
The Bank of Japan has cut interest rates to -0.1% as policymakers try to keep their economic plans intact in the face of global headwinds.
Japan's equity markets topped performance charts last year, despite ongoing concerns about the effectiveness of Abenomics and the impact of China's slowdown.
With growth low but erratic and inflation well below the Bank of Japan's target rate of 2%, the achievements of Abenomics are looking distinctly limited.