Speculators and much of the investing world have turned optimistic on the yen as U.S. President Donald Trump¡¯s trade war keeps markets on edge. But there¡¯s one key holdout that isn¡¯t ready for bullishness: Japan¡¯s richest citizens, worried about the economic outlook, according to a global wealth manager.
That¡¯s in part because the country¡¯s most prosperous households, who are sitting on loads of cash in bank accounts losing value by the day due to inflation, are still scarred by the market¡¯s collapse in the early 1990s, according to Daiju Aoki, regional chief investment officer at UBS SuMi Trust Wealth Management in Tokyo.
¡°Many wealthy clients are very, very concerned about the yen weakening, with 180 or 200 becoming realistic because of the softer economy and lack of investment in industry,¡± Aoki said in an interview at the firm¡¯s Tokyo office, referring to how much a dollar is worth in yen. While Trump¡¯s back-and-forth trade policy remarks muddy the currency¡¯s path in the near term, those levels may come ¡°within the next economic cycle.¡±
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