Attention sure to focus on "Interest Rate Target-Related Stocks" as the Bank of Japan introduces "Quantitative and Qualitative Monetary Easing with Forward Guidance for Long- and Short-Term Interest Rates"

On September 21, at the Bank of Japan’s Monetary Policy Meeting, it was decided to introduce “quantitative and qualitative monetary easing with yield curve control.”

The target has shifted from “quantity” to “interest rates,” but I feel that there are still many people who are unclear about the details.

This time, we will discuss thetwo pointsof “quantitative and qualitative monetary easing with yield curve control,”and the stocks that may move on investors’ speculative buying“yield target-related stocks”related to the policy,will be introduced.

Two Points of “Quantitative and Qualitative Easing with Yield Curve Control”

I will outline the two key points that are central to this policy.
They are written in the Bank of Japan’s release and can be considered the policy’s core.

① Yield Curve Control

The yield curve is a term used in finance to refer tothe yield curve.

This policy involves eliminating the average remaining maturity of long-term government bonds and“purchasing long-term government bonds so that their yields settle at 0%”
.

Because the target is the0% interest rate, this is why it is called an “interest rate target.”

In other words, going forward the BOJ will adjust to bring long-term interest rates down to 0%.

② Over-keiten

In short,

“Toward the 2% price stability goal, the policy of quantitative and qualitative easing with yield curve control will continue until this becomes stable.”

This is the declaration of intent, in my view.

Yield Target-Related Stocks

In light of this policy, I would like to introduce several stocks that may move.

【8306】Mitsubishi UFJ Financial Group
【8365】Toyama Bank
【8379】Hiroshima Bank
【7173】The Tokyo TY Financial Group

Because there are concerns such as the negative interest rate environment, it is not possible to say this unconditionally, but yield curve control

(the yield curve control) policy generally is favorable for bank stocks

Personally, I have been watching The Tokyo TY Financial Group, the parent company of Kiraboshi Bank, which was slated to merge in May 2018, for some time already.

In addition to yield target-related stocks, there are also themes such as Super Mario Run-related stocks, ZMP-related stocks,
lithium-ion battery-related stocks, Pokémon GO-related stocks, casino-related stocks, and so on…

I regularly write about investment themes that attract investors’ attentionso I would be grateful if you take a look.

Blog name：Kabusashi Koumei’s Stock Blog
http://kabu-hakase.com