Fiera Capital reposted this
Rob Petty, Executive Director and CEO, Fiera Asia, shares insights into Japan with CNBC Asia today. Here are key takeaways from this interview: 👉🏻 We think the Fed is likely to guide on the conservative side, so expectations are for two or three rate cuts. Most experts are aligned in their expectations for no change right now. This is a dramatic fall from the expectations for three to six rate cuts that were commonly held just months ago - it's an exciting time to be watching the Fed. 👉🏻 On the contrast, rates are going up in Japan. There is now a 500-basis point differential which is critically important for Asian investors considering investing in US dollar products. 👉🏻 The Bank of Japan has done a solid job of building expectations for higher rates, and we've seen the growth that allows that, but more importantly, inflation in Japan continues to be a factor. 👉🏻 With inflation coming to Japan along with higher rates, investors need to consider where to take the USD 7 trillion of deposits in Japanese Yen in order to get real rates of return. We see real opportunities for investment into the Japanese markets as well as for Japanese investors to continue diversifying into international products like private credit or equities. 👉🏻 Despite global political uncertainties and geopolitical tensions, there are pockets of opportunities. At Fiera, we're liking Japanese equities, small to mid-cap US equities, the Canadian market, and select opportunities within emerging markets. Yield and valuation opportunity is a good way to play these risks. Click the link below to view 👇🏻
Chief Executive Officer & Executive Director at Fiera Capital EMEA
6moGreat insights, Rob!