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Japan Post Bank to invest Y500 bil yen in foreign funds

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The cynic in me thinks they will subsequently find themselves having grossly mistimed this, or something...

Good luck, investing abroad is probably the right thing to do.

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Stock markets are at record levels and now is the time to be cautious about investment.

JP does realize this?

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mostly when Japanese corporates or financials or funds invest overseas they end up taking a bath.  for the sake of pensioners and the economy let's hope this is the exception.

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Whoa wait a minute Japan Post Bank!

To invest in medium size companies, how about Japan comes first.

After all your profits came from the Japanese people.

The government should step in and not let you take this huge investment out of Japan.

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Here's a fun fact:

There are more investment funds than there are companies to invest in.

We're in a strange world.

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for the sake of pensioners and the economy 

For the sake of shareholders, and taxpayers (to the extent that the government still owns shares in JP)

The government should step in and not let you take this huge investment out of Japan.

JP is on the privatization path, its mission is to earn money for its shareholders now. Diversifying some assets into foreign business is a prudent thing to do from a long term perspective. Besides, Abenomics has done nothing much to make for more attractive investment opportunities in Japan.

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FX - really?  Pensioners don't invest in or have money on deposit at Postbank?  you don't think economy would suffer if Postbank racks up losses on these "investments"??

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@fxgai

> Abenomics has done nothing much to make for more attractive investment opportunities in Japan.

What planet are you on? Japanese stocks are global investors' favorite these days. A cavalcade of global investors have been arriving at Haneda, keen for a piece of the action.

https://www.reuters.com/article/us-global-stocks-japan-usa-analysis/japanese-stocks-long-shunned-attract-billions-of-foreign-dollars-idUSKBN1D15O3

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Pensioners don't invest in or have money on deposit at Postbank? 

To the extent they own shares, they are shareholders. Many pensioners don’t own shares in JP.

And the savers have deposit guarantees.

you don't think economy would suffer if Postbank racks up losses on these "investments"??

Yes, to the extent that their shareholders are Japanese and undiversified.

Japanese stocks are global investors' favorite these days

To the extent they like Japanese stocks, which specific Abenomics policies do you claim is responsible for it? The article you quote mentions little of Abenomics, except for Kurodanomics., which has been going for 4.5 years already. I don’t believe that it has suddenly started to work now.

Therefore when the global economy rolls over, I am picking the Japanese economy will too because Abenomics hasn’t reformed it much at all.

With much of the foreign money being in long futures positions, there will be equivalent selling when those positions are closed. So enjoy it while it lasts, because it looks like yet another false start to me.

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To the extent they like Japanese stocks, which specific Abenomics policies do you claim is responsible for it?

Corporate Governance code, introduced about a year and a half ago. Corporate tax cut. Aggressive monetary and fiscal stimulus. To name just a few.

The article you quote mentions little of Abenomics, except for Kurodanomics.

Abe nominated Kuroda as BOJ chief, as an effort to launch Abenomics. There is no such thing as "Kurodanomics."

 So enjoy it while it lasts, because it looks like yet another false start to me.

All of your predictions on this board have been wrong over the last couple of years, so it's not like I'm paying any attention to your latest outlook. Well, actually I do. I actually enjoy ripping apart your fallacies, and there's never any shortage of them.

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On corporate governance from your own article

However, corporate governance remains a concern to some investors following major scandals.

So that doesn’t explain it.

Corporate tax cut. 

Japan’s rates remain one of the highest in the developed world after timid cuts.

 Aggressive monetary and fiscal stimulus

Yet your own article notes “stubbornly low inflation” so the former hasn’t achieved its stated objective, and the latter is standard LDP playbook, every year.

Your article even notes foreigners were net sellers of Japanese stocks in a prior period during the year.

By all means come tell us all how your Japanese stocks are doing next time the global economy rolls over.

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@fxgai

Nice cherry picking!

The bit in the article directly following your quote states: "the Japanese economy nonetheless may be developing competitive advantages and that corporate reforms on issues like executive compensation are becoming more widespread."

As for the selloff earlier in the year, that was down to "fears over a confrontation with North Korea." Sorry, can't blame Abenomics for that. Anyway, the sellers are regretting doing that(!), and after re-assessing, are piling back into the market.

"Yet the market still looks attractive to foreign investors as strong domestic demand has helped drive Japanese gross domestic product to an annualized 2.5 percent in the second quarter, its sixth straight quarter of expansion."

Yep, a bleak assessment, alright.

By all means come tell us all how your Japanese stocks are doing next time the global economy rolls over.

The difference between you and me are that I cite things that are actually happening in the real world to support my argument and earlier predictions. You constantly cite things that don't or haven't happened, or exist only in your imagination. You really don't have valid arguments, and your consistently wrong outlooks over the years are clear proof of that.

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The bit in the article directly following your quote states: "the Japanese economy nonetheless may be developing competitive advantages and that corporate reforms on issues like executive compensation are becoming more widespread."

... without offering specifics for any of that. Look if it’s good enough for you for someone to just say it, fine, but I am more discerning.

strong domestic demand

Guess the domestic demand is finally good enough for the consumption tax rate to be hiked then? Go on don’t be shy!

The difference between you and me are that I cite things that are actually happening in the real world to support my argument and earlier predictions. You constantly cite things that don't or haven't happened, or exist only in your imagination. You really don't have valid arguments, and your consistently wrong outlooks over the years are clear proof of that.

How very defensive.

The difference between you and me is that I think in the long term. You are but a short term speculator!

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Good LUCK with the overseas investment: overseas investment funds (or overseas units of Japanese investment funds) and overseas real estate.

I agree with commentators that there are lots of stock and start-up investment opportunities inside Japan. Or is investment here simply non-disclosed?

Also, the Japanese post office and all its enterprises had been (still is?) the largest agglomeration of capital in the world and was at a time just a bit more than Japan's government debt. One reason why I never was too concerned about Japan's public debt (250% or so) was that the government could just help itself to everybody's post office savings (like they did in Cyprus a few years ago). Now not so sure.

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