3 Comments

Thank you for another concise, easy-to-understand explanation of what is happening in the forex market. By the way, I noticed your comments published in the New York Times.

Why are Japanese companies with large cash reserves finding it so difficult to put that money to work?

What are they likely to do with their excess cash?

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author

There are fewer profitable investment opportunities within Japan for a variety of reasons. But,they don't want to give the excess cash back to either workers or stockholders, claiming that they need it for a rainy day. Covid convinced them that they were right to do so.

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Okay. Thanks for the quick reply. Hmmm...on the surface, a "rainy day fund" doesn't sound like the most efficient use of excess cash. Share buybacks at least?

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