Bet on reflation: SocGen analyst

Singapore

DESPITE a deflationary environment and historically low yields, investors should bet on reflation in Japan and emerging markets, said Alain Bokobza, French bank Societe Generale's head of global asset allocation.

His top idea is to sell the Japanese yen till 110 to the US dollar, and buy its Nikkei stock market index, as Japan's exporters will benefit from a cheaper yen. A higher-risk, higher-reward bet is to buy Japanese banks.