More Japanese Red Flags


Location Date: 
August 8, 2012
Content: 

Bloomberg BRIEF Newsletter was out yesterday with a terrific note on Japanese demographics and its impact on GDP growth and debt dynamics. As we noted in our Q1 2012 report to clients, the Japanese economic situation should be much higher on investor's radar screen. With debt-to-GDP over 200% and potential GDP growth negatively impacted by an aging population (where by 2022 over 30% of its population will be over 65 years old), Japanese Government Bonds and the yen have yet to reflect these risks. Today they both rank as major "safe-haven" trades...but for how long?

 

 

Jim McGovern

P.S. I highly recommend the Bloomberg BRIEF Newsletters. They pull together the reporting, insight and analysis of senior editorial staff and dedicated economists to help you stay informed. Check it out on www.bloombergbriefs.com.