DXJS - Japan's MTICCC Takes Center Stage
2024-03-27 10:20:00 ET
Summary
- “Management That Is Conscious of Cost of Capital” (MTICCC) is a significant driver of the recent bullish trend in the Japanese stock market, with the Nikkei surpassing its 1989 high and the 40,000 level.
- Japan is trying to shift from a cash-hoarding culture to an investment culture, with reforms like the Doubling Asset-Based Income Plan and changes to NISA accounts to encourage equity investments.
- The Japan Exchange Group is encouraging companies that adhere to MTICCC principles, and there’s a broader push for asset management industry reform and accountability to shareholders.
By Jeff Weniger, CFA
Who would have thought that such a benign phrase as “Management That Is Conscious of Cost of Capital” (MTICCC from here on) could be a driver of bullish spirits in a stock market?...
Japan's MTICCC Takes Center Stage