Active Investing in Japan

To say that the Japanese are sitting on a lot of cash is an understatement. In fact, with as much as $15T of aggregate “AUM,” they continue to struggle (esp. since the YCT was grounded) to find a way to earn better than next-to-nothing returns, given the nation’s miniaturized monetary policy. Individual investors’ long disregard for domestic equities (they’re not solely to blame) has been a big hindrance in bringing the benchmark Nikkei 225 back to a respectable level (20k remains elusive, but first things first, back to 10k). Don’t despair, however, because the Yamadas and Watanabes are back in action, rising through the wreckage — after the N225 nosedived in October to a 26-year low. continue reading…