Title: Top 3 Reasons You Should Invest in Japan
Headings: Top 3 Reasons to Invest in Japan
Top 3 Reasons to Invest in Japan
Japan could see brighter days ahead
1. Federal Reserve Rate Hikes
2. Abenomics Is Slowly Working
3. Technology Leadership
Important Considerations
The Bottom Line

Content: 2. Abenomics Is Slowly Working
Shinzo Abe’s economic policies—known as Abenomics —may have been slow to start, but there have been real improvements in the underlying economy. The policy’s stated goal was to use monetary easing, fiscal stimulus, and structural reforms to jolt the economy out of the ‘suspended animation’ that has affected it for more than two decades. The first two ‘arrows’ were relatively easy to implement, but structural reforms have been slow to materialize. Japanese inflation initially rose past 3 percent by 2014 in response to the policy, but eventually fell back below 0 percent by 2016. In 2017, inflation began to rise once again to around 0.2 percent after the central bank said it would make yield curve control a central component of its new policy framework. The goal was to purchase 10-year government bonds to keep yields at 0 percent while abandoning its official target for expanding the monetary base. The prospect for higher inflation could boost the outlook for Japanese stocks and the wider economy, while an end to decades of deflation and stagflation could lead international investors back into the market. International investors should keep an eye on both headline inflation rates and progress being made on the more-difficult third arrow of Abenomics—structural reforms that have yet to fully take place. 3.