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Ruffer buys old tech for mini-bubble protection
by Dylan Lobo on May 12, 2014 at 13:23
The pair said its meetings with the Bank of Japan and 'numerous' company meetings suggest prime minister Shinzo Abe's program is on track, with signs of positive inflation and growth.
'We are half way through the stimulus programme which has succeeded in delivering dramatic growth in corporate profitability which will feed through to consumers through salaries, bonuses and dividends,' Russell and Baillie said.
'The government is preparing the ground for structural changes to employment law, agricultural reform and the introduction of corporate tax incentives. At the same time land prices in Tokyo are rising and the banking sector is willing and able to lend.
'We feel that this is an encouraging backdrop. We should not expect the same level of return as we saw last year but if a domestic recovery is achieved then the very low level of expectations in markets means that there is still plenty to go for.'
In the three years to May 2014 Ruffer Investment Company's net asset value has rise by 10.7% versus the 27.54% rise in the FTSE World Index. The trust sits on a 1.4% discount.
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As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.
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by James Phillipps on Jul 25, 2014 at 14:49