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Japanese Backtrack: Is Another Recession Around the Corner

Japanese Backtrack: Is Another Recession Around the Corner (CNBC)

While news of the U.S. government’s continued shutdown, and its effect on the markets, steals headlines, analysts like Albert Edwards of Societe Generale warn investors not to be distracted from what’s going on in Japan. For, despite all of the positives brought about by Prime Minister Shinzo Abe’s reforms, events could be turning south. Edwards points out that the 10-year Japanese government bond yield has declined to 0.65 percent, barely above all-time lows. And that Honorable Abe’s commitment to raising the country’s consumption tax from 5 percent to 8 percent could return the country’s economy to its decades-long malaise. The last time this tax was hiked was in 1997 and that move is blamed for launching the country into its recession. If you’ve recently come back to Japan as an investment, don’t just set it and forget it…

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Japanese Backtrack: Is Another Recession Around the Corner

While news of the U.S. governmentâ??s continued shutdown, and its effect on the markets, steals headlines, analysts like Albert Edwards of Societe Generale warn investors not to be distracted from whatâ??s going on in Japan.

Japanese Backtrack: Is Another Recession Around the Corner (CNBC)

While news of the U.S. governmentâ??s continued shutdown, and its effect on the markets, steals headlines, analysts like Albert Edwards of Societe Generale warn investors not to be distracted from whatâ??s going on in Japan. For, despite all of the positives brought about by Prime Minister Shinzo Abeâ??s reforms, events could be turning south. Edwards points out that the 10-year Japanese government bond yield has declined to 0.65 percent, barely above all-time lows. And that Honorable Abeâ??s commitment to raising the countryâ??s consumption tax from 5 percent to 8 percent could return the countryâ??s economy to its decades-long malaise. The last time this tax was hiked was in 1997 and that move is blamed for launching the country into its recession. If youâ??ve recently come back to Japan as an investment, donâ??t just set it and forget itâ?¦

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