Fixed Income Investment Outlook – Q2 2022

investment advice

The Japanese yen has Never Been Cheaper

 

 

  • Against the US dollar, the Japanese yen is at a 24-year low
  • Over the same period, the domestic purchasing power of the dollar has almost halved, whilst that of the yen has barely moved
  • Consequently, the yen is extremely undervalued according to our PPP valuations (see chart)
  • Short term weakness has been driven by monetary policy divergence
  • But in order to maintain relative purchasing power, the yen should be much stronger

 


Disclosures

Views expressed were current as of the date indicated, are subject to change, and may not reflect current views. All information is subject to change without notice.

Views should not be considered a recommendation to buy, hold or sell any investment and should not be relied on as research or advice.

The document may include forward-looking statements. All statements other than statements of historical facts are forward- looking statements (including words such as “believe,” “estimate,” “anticipate,” “may,” “will,” “should,” “expect”). Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Various factors could cause actual results to differ materially from those reflected in such forward-looking statements.

This material is for informational purposes only and is not an offer or solicitation with respect to any securities. Any offer of securities can only be made by written offering materials, which are available solely upon request, on an exclusively private basis and only to qualified financially sophisticated investors.

The information was obtained from sources we believe to be reliable, but its accuracy is not guaranteed and it may be incomplete or condensed.

It should not be assumed that investments made in the future will be profitable or will equal the performance of any security referenced in this paper. Past performance is not a guarantee of future results. An investment involves the risk of loss. The investment return and value of investments will fluctuate.

Recent Insights

Global Equity Investment Outlook – Q3 2023

The most recent IMF forecasts for world growth estimate 3% real GDP growth for this year and next year, with the US economy avoiding a recession. While projected global growth is low against pre-pandemic history, most investors would be relieved to escape that easily.

Read More

International Equity Investment Outlook – Q2 2023

The Japanese equity market has enjoyed a resurgence of popularity as corporate governance reforms led by the Tokyo Stock Exchange have drawn investors back. This has been welcome for Mondrian’s international and global equity portfolios which more recently have had a differentiated and contrarian overweight position.

Read More

Search on Mondrian.com

North American Investors

201 King of Prussia Road
Suite 620
Radnor, PA 19087 
United States

Non-North American Investors

Tenth Floor
Sixty London Wall
London EC2M 5TQ
United Kingdom

Asia-Pacific

6 Battery Road
Unit 27–04
Singapore
049909