Sparx leans on experience in Japan to deal with fallout from the West

Mon Sep 26, 2011

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The turmoil in August challenged all suppositions that the worst had already passed for the global capital markets. Amid continuing European debt woes, fiscal despair in the US and a big sell-off across markets, AsiaHedge senior writer Rodney Diola met with Sparx Group founder, CE0 and CIO, Shuhei Abe to discuss where the markets are headed and how Sparx is responding


It must have been challenging for Sparx to operate in this kind of environment. Yes, it is difficult but this type of market activity is something we are accustomed to. It is probably more of a big shock to young US traders who have been in the bull market for the past 10 years but if you asked Taniguchi-san [Sparx Asset Management group COO Masaki Taniguchi], whether it shocked him or not, his reaction will probably be far calmer. [In Japan,] we saw our first big shock in 1990; from 1990 to 1992, it was really damaging with our group struggling every day. Back then, the Miyazawa cabinet introduced a very large fiscal spending package. It was a situation very similar to the US now where US traders are hoping the US government can save them, but this problem is essentially a balance sheet adjustment for the system and will...

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