Naoki Kamiyama: The NISA has potential to get ¥4–5 trillion and may gather a total of ¥20 trillion over time. The IRA would be designed for older people, and they have more money in a sense, but they may be more conservative in their allocations. So the total money moving to equities and risky assets may be similar or less to that ¥20 trillion. A lot of the flows will depend on the market environment.
Are there other topics related to Abenomics you want to discuss?
Naoki Kamiyama: Quite many investors might be interested in the casino issue. Gambling is quite regulated, but we expect exemptions to be put in place, like the Atlantic City, New Jersey, area. This is quite likely for this year to see reduced restrictions on gambling, creating more opportunities for gambling companies and also real estate, construction companies, gaming companies. This is representative of the deregulation of the government.
We thank all the strategists for their participation in our Japan roundtable. To read more from these analysts, please see the full discussion here.
1Applied Materials: As of 12/31/2013, Applied Materials was a 0.00% holding in DXJ, DXJS as well as DFJ. For a full list of current holdings of the WisdomTree ETFs, please visit wisdomtree.com.
2Tokyo Electron: As of 12/31/2013, Tokyo Electron was a 0.27% holding in DXJ, a 0.00% holding in DXJS and a 0.00% holding in DFJ. For a full list of current holdings of the WisdomTree ETFs, please visit wisdomtree.com.
3Toyota: As of 12/31/2013, Toyota was a 4.78% holding in DXJ, 0.00% in DXJS and 0.00% in DFJ. For a full list of current holdings of the WisdomTree ETFs, please visit wisdomtree.com.
Important Risks Related to this Article
Foreign investing involves special risks, such as risk of loss from currency fluctuation or political or economic uncertainty. Investments focused in Japan are increasing the impact of events and developments associated with the region, which can adversely affect performance. Investments focusing on certain sectors and/or smaller companies increase their vulnerability to any single economic or regulatory development. This may result in greater share price volatility.
Fixed income investments are subject to interest rate risk; their value will normally decline as interest rates rise. Fixed income investments are also subject to credit risk, the risk that the issuer of a bond will fail to pay interest and principal in a timely manner, or that negative perceptions of the issuer’s ability to make such payments will cause the price of that bond to decline.