The SUNARES Report May 2015
We have not published a report for some time but this update reviews Japan’s extraordinary approach to monetary intervention. The scale of Japan’s quantitative easing (QE) programme is already extreme given that October’s QE announcement announced total debt monetisation.
However, there is a strong case to suggest that Japan has started along a road that can only lead to further QE intervention that in turn will lead to further weakness for the yen. There are significant implications for asset markets across the world if this scenario does indeed play out and investors need to be positioned for it.