investment strategy.

Understanding Portfolio Concentration: Risks, Metrics, and Investment Strategies

Portfolio concentration refers to the extent to which a portfolio is invested in a limited number of assets, sectors, markets, or asset classes. While higher concentration typically increases portfolio risk, it does not necessarily lead to higher returns; in fact, returns are often lower.

Japan Needs Permanent Fiscal Expansion to Break Deflationary Trap and Revive Investment

Until the corporate savings rate attains a normal negative level and structural deflationary pressures are eliminated, the policy mix of monetary and fiscal policies should maintain the expanding power of the Japanese economy. The increased predictability of firms’ sustained nominal GDP expansion would cause firms to shift their management strategies from cost cutting to investment.

GPIF Portfolio Stability and Japanese Investment Trends Ahead of 2025 Strategy

In February 2025, Japanese investors net purchased JPY3.0trn ($19.5bn) of foreign securities (equities + long-term bonds), the largest net purchase since August 2024 (Fig. 2 ). The main contributor was net purchases of foreign bonds by pension funds and banks (Fig. 3 ). 

Does borrowing make sense in 2025?

US Treasury yields have been on a rollercoaster this year. But we expect the appeal of borrowing strategies to rise as the global rate-cutting cycle continues. Borrowing can form part of a financial plan, subject to awareness of its risks.  

GBPCHF Outlook. Strong Carry Appeal Amidst Risk-Driven Shifts and Trade Uncertainty

• Following the January dip, the GBPCHF has been testing the upper bound of its trading range over the last six months. We expect the currency pair to stay largely range bound in the coming months.