As I explained, if people expect prices to go up down the road, the real rates of return from cash as well as deposits and bonds – for which interest rates are fixed – will decline. Holding those assets will become less attractive than in the past.
In light of such developments, market participants with rising inflation expectations will shift part of their portfolios from cash, deposits, and bonds including JGBs to equities (including equity trust funds), real estate and homes (including real estate investment trusts such as J-REITs) or, alternatively, foreign-denominated assets for which returns are higher than those derived from yen-denominated assets.