Veteran Japan investor takes out full-page ads to warn of bubble as stock markets surge higher

By: |
September 28, 2021 11:44 AM

A legendary figure in Japan’s equity markets warned of a bubble caused by excess liquidity in a series of full-page advertisements printed in Japan’s broadsheets on Monday.

Nikkei 225, TOPIXChartists say that the Nifty index below 17,550 will take it to 17,200 levels. (Image: REUTERS)

By Gearoid Reidy

A legendary figure in Japan’s equity markets warned of a bubble caused by excess liquidity in a series of full-page advertisements printed in Japan’s broadsheets on Monday. Atsuto Sawakami, who set up Japan’s first low-cost mutual fund and helped to promote long-term investing in local stocks, published the advertisements in newspapers including the Nikkei and the Asahi. 

“The collapse of the bubble is just a matter of time,” one of the ads said, which carried Sawakami’s name and that of the firm he founded, Sawakami Asset Management Inc. “The time to act is now. Get as far away as possible from this growing, epic bubble.” 

Another warned of the long-term impact of zero interest rates and monetary easing, saying low-cost financing made businesses slack off and reduced investors’ risk awareness. They encouraged investors to invest for the long term to reduce the damage they face. The ads come as Japan’s stock markets enjoy their best run in months, with the Nikkei 225 Stock Average and the broader Topix index the best-performing equity markets in the world so far this month. 

Atsuto Sawakami, 74, the former Japan head of what is now Pictet Asset Management Japan, helped pioneer mutual funds sold directly to individuals. His son Ryo now heads the firm he founded, which had more 360 billion yen ($3.3 billion) in assets under management as of Sept. 24, according to its website, with about 91% of assets in domestic stocks.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1U.S. Stocks : Wall Street climbs on strong Goldman Sachs earnings, retail sales data
2Analysing the volatility index: How disease outbreak news impacts equity and commodity markets
3Central banks gear up for tapering; expect movement in equities, other assets may remain contained