Can Abe turn on the fountain of youth?

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At 17,357 points today, Japan’s flagship index has nearly doubled since Mr. Shinzo Abé took power in late 2012. Among the developed countries, it is by far the best performer. Its performance has been twice as strong as that of the S&P 500 and three times that of the EUROSTOXX 50. The country’s paltry economic performance hardly justifies such a rise. Perhaps the BoJ’s pump priming is to be considered the lone explanation for the rocketing Japanese market, which would be analogous to recognizing that we are merely facing a giant speculative bubble. What factor would justify the Nikkei’s performance? Perhaps the belief that Abenomics has the magical power to combat the primary cause of the Japanese economy’s suffering: the ageing Japanese population?

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