Nikko Am Evolving Markets report -September 2014
Nikko AM’s Global Investment Committee (GIC) met on 26 September and chose a relatively positive global-macro scenario, implying an increased overweight stance on global equities.
Primarily, we believe that the G-3 economies will move steadily ahead and that US monetary conditions, although moving towards tightening, will remain very accommodative (with the Bank of Japan (BOJ) and European Central Bank (ECB) being even more so), allowing equity markets to move higher.
In this edition, we also update some of our Abenomics guideposts on corporate profitability, wealth effects and inflation trends. We continue to suggest that Abenomics, while not perfect, is working well, especially for corporate profits, with perhaps the most compelling recent news being the progress towards a major corporate tax cut, which is more a bazooka than an arrow, in our view.
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