New technologies allow companies to produce more at lower cost and can lead to the creation of entirely new industries. In doing so, the technologies create value that is distributed throughout the economy through several channels. One channel is higher profits. Investors certainly see that potential in today’s digital disruption.
What is important is not to fear changes but to look for a style of business and living that suits the economy after overcoming deflation. The QQE has been steadily exerting its intended effects and Japan’s economy has been following a path toward achieving the 2 percent price stability target as expected.