Wealth Report: Japan
Julius Baer’s second Wealth Report for Japan, monitoring the cost of living in luxury as well as the wealth creation, is optimistic about the country’s growth trajectory.
The third instalment of the Julius Baer Wealth Report: Japan comes as the global economy grapples with inflationary and deflationary forces as well as renewed uncertainty over how investors should be positioned. With a pronounced history of deflation and an ageing society, Japan’s example is often seen as instructive for investors and policy-makers alike. This year’s report puts the Japanese experience into an international context and takes a fresh look at the factors that underpin this leading economy.
In conjunction with the 2016 Julius Baer Wealth Reports on Asia and India, the Japan report features additional insights that are leveraged from our long standing work with the Julius Baer Lifestyle Index. Japan has a unique position in the world of luxury consumption, with a significant proportion of high-income travellers seeking out its unique high-end goods and high-end travel-related services. This strong demand helps explain why in yen terms, travel-related items in the Tokyo component of the Julius Baer Lifestyle Index managed to record a double-digit growth this year.
We round out the 2016 Julius Baer Wealth Report: Japan by examining the theory and realities that accompany the particularly high levels of cash holdings by domestic investors. The persistence of negative interest rates is a game-changer in Japan and raises important questions as to how cash can be used effectively in portfolios.
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