Presented without comment, from RBS on Thursday:
…our colleague Bill O’Donnell reports that a new Japanese Ministry of Finance advert says that Japanese women prefer men who invest in government bonds, as ‘Playboys are no good’. This tells you all you need to know about why you should buy bonds. Even when someone is trying to be bullish govvies – as the government is, good for them – they are still seen as a dull last resort anti-playboy investment. We suggest you will see far greater (positive) returns in 30-yr govts in 2010 than you will see (negative) return in equities. And are JGBs boring? You decide. 10-yr JGB total return YTD: +2.1%, NIKKEI total return YTD: -9.9%. Seems to me that if you want to finance that playboy lifestyle you would do far worse than buying some bonds!
(H/T TB)
Related links:
Yes-we-Kan effect disappears in JGBs – FT Alphaville
Japan’s post-Hatoyama outlook: ‘Shades of drab’ – FT Alphaville
JGB update: Is Japan the next Greece? – FT Alphaville
On the not-unlimited investor appetite for government bonds – FT Alphaville