Markets will remain susceptible to profound macroeconomic uncertainty, centred on global inflation, interest rates and the risk of recession. We are closely monitoring the impact that imported costs are having on companies and consumers in Japan. But inflation is much lower than in other regions and the country is starting to get back to normal as the pandemic recedes.
In this environment, we are focusing on firms benefiting from reopening, and oversold, consistent growers. There are also opportunities in the mid- and small-cap sector, where valuations have come down significantly, resulting in bargains for medium-term investors.
