Ever since taking office in 2012, Japan Prime Minister Shinzo Abe has been on a mission to improve Japan’s economy. Abe moved quickly to launch an aggressive and unconventional economic stimulus program, a “three arrows” agenda that would attempt to provide stimulus on three fronts:
Monetary Stimulus – Quantitative easing policy designed to defeat deflation
Fiscal Stimulus – Increase deficit spending to accelerate economic activity
Structural Reform – Create policies and programs to stimulate private investments and build the economic foundation for higher long term trend growth within the Japanese economies
After two and half years of implementation of Abe’s agenda, the Cambiar International Team has created a follow up white paper titled (Stock Selection in the Era of Abenomics II) detailing the successes and shortfalls of the plan and the effects on Japanese equities.