Buy: Matthews Emerging Asia Investor (MEASX)
From Moneyletter
Prime Minister Abe’s government is doubling down on its commitment to monetary stimulus to help pull his country out of its deflationary mess. Unfortunately, efforts to date have not produced the desired result. For the January to July 2016 period, inflation actually fell (-0.5%, excluding fresh food). Abe is working closely with Bank of Japan Governor Haruhiko Kuroda and their latest strategy is to try to lower expectations for inflation. Hoping to sway attitudes, they now say they’re willing to “let inflation overshoot” targets. That result is unlikely and we doubt continued monetary stimulus will yield dividends quickly.
In the period just after Brexit, the Nikkei 225 gained more than 11%. Since mid-July, it has gone mostly sideways with increased volatility. The index is down 14% year-to-date, but we are moderately positive on this market over the next 6–12 months.
In our Venturesome portfolio we added Matthews Emerging Asia (MEASX).
Walter Frank, Moneyletter, www.moneyletter.com, 800-890-9670, October 5, 2016