If you were forced to admit that everything you believed about markets and monetary policy was in fact completely fallacious, as this week's Japanese GDP collapse proved of Abenomics and devaluing yourself to prosperity, could you do it? Or would you stick to your blinkered views of the world... The following characters continue to have faith in the self-proclaimed ponzi scheme...
Yesterday’s [GDP] report “is a small setback, but it should be viewed as a buying opportunity,” John Praveen, chief investment strategist at Prudential International Investments Advisers LLC
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“There’s no reason to be depressed,” Audrey Kaplan, the head of international equities for Federated Investors Inc., which oversees about $350 billion, said by phone from New York. “It’s just pushing the recovery back a bit. We look at Abe trying to break the cycle of deflation and from the top down they’re doing the right things.”
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“When you boil it all down, at least near-term, a weakening currency is helpful for the economy and the drop in GDP is backward-looking,” said Wayne Lin, a fund manager at QS Investors,
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“It’s binary -- you either believe in the market or you don’t,” said Luschini, who helps oversee $67 billion including Japanese stocks. “We aren’t taking a secular view that the Japanese market looks great because the economy looks great. We view this as tactical. If investors do warm to the fact that market could respond favorably to these positives, that’s a tactical reason to own it.”
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“On the question of whether Abenomics is working or not, it’s kind of working but we need to do more of it,” said Stewart Richardson, who helps oversee $180 million at RMG Wealth Management LLP in London. “It’s just not wise to bet against a central bank when it has such deep pockets.”
But there are some voices of reason - that are not buying into the self-proclaimed Ponzi scheme...
“A lot of people will say he has tons of rope, he can keep weakening the yen -- those aren’t sustainable,” said Gareth Watson, vice president of investment management and research at Richardson GMP Ltd. in Toronto. The firm manages about C$29 billion. “Longer term, it doesn’t solve the structural issues.”
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And as a reminder, here is what Abenomics architect Hamada said about the cult [9]...
Mr Hamada agreed that Japan had created a "mild ponzi game", he also said it was a "feasible" one because of Japan's huge foreign reserves.
“In a Ponzi game you exhaust the lenders eventually, and of course Japanese taxpayers may revolt. But otherwise there are always new taxpayers, so this is a feasible Ponzi game, though I'm not saying it's good.”
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