The following are comments by investors and analysts following today’s earthquake in Japan. An 8.9-magnitude earthquake struck the coast of Japan, causing a tsunami as high as 10 meters that inundated towns north of Tokyo.
Tomomi Yamashita, an analyst at Shinkin Asset Management Co., which oversees about $6 billion:
“It would be a concern if this acts as a reminder to foreign investors about the natural-disaster risks in Japan. People may move away from risk assets and fly to bonds in the short term.
“This doesn’t mean Japan’s economy itself will break down. With earthquakes, things go back to normal after a few months. So investors’ risk aversion will probably only last for a short while.
“Not only the market, but as human beings, we have to realize that this kind of danger is something we may come across at one point.”
Venkatraman Anantha-Nageswaran, global chief investment officer at Bank Julius Baer & Co. in Singapore, which had 170 billion Swiss francs ($182 billion) in of assets under management as of end 2010:
On the impact on Japan’s market:
“It comes at the wrong time for Japan because it’s kind of in a fragile recovery that partly depends on the global environment. They’ve had some political changes and corruption allegations, and now this. Even the tactical bullish stance that many investors have adapted on Japan may undergo a revision. People may once again believe that this is a false dawn, one more time.”
On changes in investment stance:
“Right now, it may only go towards increasing the cash level because most of the people have extremely low cash levels in general globally. I don’t think the rest of Asia ex-Japan looks interesting right now.
“I don’t think the shift will happen between markets, but the shift will happen for the time being into more cash. Julius Baer has not taken any position based on this news at the moment.”
Tsuyoshi Segawa, a strategist at Mizuho Securities Co. in Tokyo:
An earthquake in Kobe in Japan in 1995, which measured 6.9 according to the USGS, killed about 6,400 people.
“The 1995 earthquake didn’t cause direct damage to Japan’s economy, and that will likely be the case this time as well.
“People bought earthquake-related stocks in past earthquakes, but that kind of fishing in troubled waters won’t last that long.”
Tomomi Yamashita, an analyst at Shinkin Asset Management Co., which oversees about $6 billion:
“It would be a concern if this acts as a reminder to foreign investors about the natural-disaster risks in Japan. People may move away from risk assets and fly to bonds in the short term.
“This doesn’t mean Japan’s economy itself will break down. With earthquakes, things go back to normal after a few months. So investors’ risk aversion will probably only last for a short while.
“Not only the market, but as human beings, we have to realize that this kind of danger is something we may come across at one point.”
Venkatraman Anantha-Nageswaran, global chief investment officer at Bank Julius Baer & Co. in Singapore, which had 170 billion Swiss francs ($182 billion) in of assets under management as of end 2010:
On the impact on Japan’s market:
“It comes at the wrong time for Japan because it’s kind of in a fragile recovery that partly depends on the global environment. They’ve had some political changes and corruption allegations, and now this. Even the tactical bullish stance that many investors have adapted on Japan may undergo a revision. People may once again believe that this is a false dawn, one more time.”
On changes in investment stance:
“Right now, it may only go towards increasing the cash level because most of the people have extremely low cash levels in general globally. I don’t think the rest of Asia ex-Japan looks interesting right now.
“I don’t think the shift will happen between markets, but the shift will happen for the time being into more cash. Julius Baer has not taken any position based on this news at the moment.”
Tsuyoshi Segawa, a strategist at Mizuho Securities Co. in Tokyo:
An earthquake in Kobe in Japan in 1995, which measured 6.9 according to the USGS, killed about 6,400 people.
“The 1995 earthquake didn’t cause direct damage to Japan’s economy, and that will likely be the case this time as well.
“People bought earthquake-related stocks in past earthquakes, but that kind of fishing in troubled waters won’t last that long.”
No comments:
Post a Comment