As featured in the Seven Hills magazine June 2008 edition: Richard Cayne of Meyer Asset Management Ltd in Tokyo Japan explains why the Yen can’t stay strong for too long as Japan is still an export nation and a good part of trade translates back into Yen therefore the weaker the Yen the more of it they will have on their balance sheets come April for fiscal year close in Japan. In general Japanese have experienced an appreciating currency for the past 30 years and as such consumers have enjoyed deflation where they have relied on the currency as a strong store of value. However when the Yen does start getting weaker explains Cayne it may be very difficult for the Japanese consumer to deal with inflation and watch their currency’s store of power deteriorate unless Japanese investors put their cash into appreciating asset classes such as stocks and real estate.
Seven Hills magazine’s readers are High Net Worth Individuals in Japan
