A model which UK is following, Japan is trying to implement and some thing which Sri Lankan stock market should look into as well. Japanese investors are being encouraged to buy more stocks One thing that has held the Japanese stock market back is that Japanese households are extremely reluctant to buy into their own market. Less than 10% of the average Japanese household’s portfolio is in shares, compared with over 30% in America. This makes the market unusually dependent on foreign investors, who tend to be shorter-term investors than domestic ones. This aversion to shares among the Japanese can partly be explained by static or falling prices, which makes bonds attractive, even at low yields. An ageing population may also find a fixed income more attractive. However, the government is trying to encourage a more aggressive investment culture by copying the UK and creating the Japanese Nippon Individual Savings Account (Nisa), allowing households to invest up to ¥1m (£5,836) a year tax-free in stocks or investment trusts. (Moneyweek)
Posted on: Mon, 31 Mar 2014 09:58:15 +0000
Trending Topics
Recently Viewed Topics
© 2015