BOJ Inflation Targeting Spurs Japan Outperformance

Japan's economy has been mired in deflation for the most part of 2 decades. Consequently capital stays idle in zero-yielding bank accounts (where it is duly recycled into purchases of government bonds) rather than invested in a productive way. This is all likely to change with the Bank of Japan yesterday finally announcing a specific inflation target. The combined savings of all the people in Japan amount to a massive amount of financial capital. If inflation does pick up, and people wake up to the need to look for meaningful ways to invest it, this can really jump-start the economy and propel the Nikkei to ever higher levels. (Especially if you