'Abenomics' is working and inflation will spur the Japanese to invest for greater yield, offering bullish prospects for the Nikkei, said John Koudounis, CEO or Mizuho Securities USA. Koudounis added that since Prime Minister Shinzo Abe was reelected stocks have doubled, the job market has tightened and wages are rising the most in 15 years. He said inflation in Japan has increased 2.2% this year, for the first time in 20 years. Furthermore, Koudounis said the Japanese have $1.6 trillion in savings and if just 1% of these funds moves to equities, it will add 6% to the Nikkei. Finally, he said Corporate Japan is looking abroad for M&A and foreign investors are helping to lift the Japanese economy.
More from Video
Amid the Selling, Here's the Big Question Now
How quickly do we find support, is what we'll want to know now, as the correction is occurring while economic optimism builds.
One Tweet Pulls the Rug Out From Under the Indexes
Despite the president's promise of no stimulus until after Nov. 3, there are no signs yet that this is the sort of correlated selling that leads to a deep correction.
A Technical Look at the New Dow Jones Industrial Average
Salesforce, Amgen and Honeywell will give a lift to the DJIA going forward.
Conagra Brands Looks Tastier After Its Upgrade to Buy
CAG has hung onto the bulk of its recent gains, and could rise to the $50 area, according to the charts and indicators.
Biogen Bulls Get a Lift From Quant Upgrade and Strengthening Charts
Breaking down an approach to the long side of this biotech stock.