- Richardson believes there is more to come for equities from further deflation of the yen and action from the Japanese government in terms of reform.
- As a counterweight if this view doesn’t materialise, the fund is short the Japanese retail sector, which is trading on a 10-year P/E high relative to the index, even though another sales tax hike is scheduled for 2017.
- The fund has a European yield curve steepener because Richardson believes the market’s long-term view on the European economy and inflation is far too pessimistic.
