Alford & Sons Investments (ASI) Advise Investors to Consider Yen Bonds as Japan’s Economy Shows Signs of Stalling
Responding to recently published data showing Japan’s economic growth to have stalled for a fourth successive month, Analysts from Alford & Sons Investments (ASI) are taking a positive position on Japanese bonds.
January 25, 2008 (FPRC) --
The leading index – Japans broadest indicator of future economic activity, was at 10% in November, (matching the median estimate of 28 econ2íŘęŚf Bloomberg News) . A reading of below 50 signals slower growth in the next 3-6 months, and analysts at ASI have said that they expect the economy to keep slowing through 2008 as the fallout from the US and European economic slowdown spreads to Asia.
James McMaster, Senior Analyst at Alford & Sons, pointed to a slew of weak economic data from the world’s second largest economy, such as falling wages, rising food and energy costs and the worst slump in housing starts in 40 years stating that “With domestic consumption flat, the economy will be more dependent on exports, which are already the driving force behind the recent expansion.”
McMaster continued to state that the danger now is that demand from the Asian (primarily Chinese) market, which is responsible for almost half of all Japanese exports will “Dry up as the impact of the US slowdown reaches Asia.”
An unconfirmed statement from US-based Alford & Sons, which has yet to be released to the public, is believed to put a strong buy rating on Japanese bonds, despite the low yields, citing a greatly reduced demand for exports and thus a slowing economy, which in turn will make it very difficult for the central bank to raise interest rates.
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For more information contact Geoff White of Alford & Sons Investments (http://www.alford-sons.com) 888-236-2434
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