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Audrey Morgy


Member since July 24, 2013

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    Japan’s Government Pension Investment Fund plans to boost investment in growth stocks to increase returns and may eventually allocate several trillion yen to such equities, the Nikkei newspaper said.

    The state-run ¥121 trillion ($1.24 trillion) fund, the world’s biggest manager of retirement savings, will initially invest several billion yen in a new domestic index focused on returns on equity, governance and trading volume, Nikkei said Saturday without citing anyone.

    Japan Exchange Group Inc. will this year announce criteria and about 500 stocks for the new index, which will be based on fundamentals, CEO Atsushi Saito said in Tokyo on July 30. That will be a departure from benchmarks like the Topix index, which includes all stocks listed on the Tokyo Stock Exchange’s first section, or the Nikkei 225 Stock Average.

    Calls made Saturday to GPIF and the exchange were unanswered.

    “It’s going to be like a membership of the country club and many companies will want to join a special club,” Curtis Freeze, the Tokyo-based chief investment officer at Prospect Co., which manages about $330 million in Japanese equities for overseas investors, said by phone Saturday. “It’s going to be a quality index, not just a quantity index, and that’s very important.”

    GPIF is meanwhile hiring staff for its investment management and research units. The fund is looking for people aged 28 or younger to start in January, according to its website. It’s also advertising jo...

  • Economist: U.S. labor market recovery is a fraud

    University of Central Florida economist Sean Snaith has this to say about the current labor market recovery: It’s a fraud.

    That’s because there’s more to assessing economic recovery than just monthly payroll job gains and a declining unemployment rate, he said.

    “You need to look at the number of jobs being created in the context of the potential number of workers in the U.S. economy,” Snaith said. “The gap between payroll employment and the Congressional Budget Office estimates of the potential number of workers in the U.S. economy is pretty darn scary right now.”

    If payroll job growth were to persist at the average level of the past three jobs reports and increase at just 148,000 jobs per month, it would take until December 2021 for employment to reach its CBO estimated potential, he added.

    In his 2013 third-quarter U.S. forecast, Snaith explains that by just focusing on the unemployment rate, many analysts erroneously are predicting a fast recovery that’s simply not there yet.

    That’s why it’s not surprising that consumers are holding back on spending, which in the past has brought the economy out of the doldrums, he said.

    Snaith was only one of four national economists to predict that the federal Reserve Bank would continue to funnel billions of dollars into the market on a daily basis as a way to help stimulate the economy and not begin tapering that process until 2014.

    “Will the Federal Reserve’s...