< The 2014 All-Japan Research Team Ryota Sakagami & team SMBC Nikko Securities First-place appearances: 0
Total appearances: 2
Team debut: 2013 “Strongly outgoing and a hard worker” is how one portfolio manager describes SMBC Nikko Securities strategist Ryota Sakagami, who leaps from last year’s debut at runner-up to capture second place. “He represents the next generation of analyst,” the backer asserts. Sakagami believes that the global stock correction is not likely to be prolonged and counsels against shifting to a bearish stance. “The downside for Japanese stocks is limited, assuming global risk aversion does not pick up again,” he says, “so we advise preparing for an uptrend in share prices.” Longer-term policy catalysts include a potential reduction of the corporate tax rate by 10 percentage points, to approximately 25 percent, and possible adjustments to the Government Pension Investment Fund’s asset allocation that could result in a major increase in the weighting of the nation’s equities, explains Sakagami. Although he cautions that “uncertainties remain” because these measures will require coordination with the ruling Liberal Democratic Party and relevant ministries. Monetary policy will continue to be supportive of a robust market, the strategist adds, forecasting that share price and foreign exchange trends will prompt additional easing by the Bank of Japan. One sector Sakagami favors is banks, which will benefit from a moderate recovery in lending for capital expenditures, among other factors, he advises.