In the second of AsianInvestor's forecasts for the lunar new year, we predict that Japan will miss its inflation target and assess what prime minister Shinzo Abe should do to defeat deflation.
CLSA’s global equity strategist, Chris Wood, says Kuroda has set the wrong inflation target and is impoverishing households, but suspects he will still extend quantitative easing.
The US dollar fund invests up to 70% in sovereign and inflation-linked bonds and 30% in commodities and cash. It is built to provide returns in inflationary and deflationary cycles.
And deflation would reduce the value of inflation-linked assets, making them an attractive play, says the firm's chairman, Robert Arnott. But he's more concerned about record-high US debt levels.