How to Protect Assets in an Era of Accelerating Inflation

Tomoo Horie, CEO of Japan Asset Management, lays out a diversification strategy across foreign currencies, equities, and real estate on the premise that inflation will keep accelerating.

• Japan’s government debt stands at ¥1,300 trillion; Horie argues the only realistic path to fiscal stabilization is sustained inflation
• With real interest rates negative, holding assets purely in yen is equivalent to an all-in bet on the yen
• At least half of your assets should be in foreign currencies — GPIF itself runs half its portfolio in overseas assets
• USD-denominated money market funds currently yield over 3%; foreign bonds 4–5%, enough to offset yen inflation
• Nomura Research Institute data: 77% of the financial assets held by Japan’s top 1% are in real estate
• Under inflation, the real cost of debt falls, making leveraged real estate an effective strategy
• Ministry of Finance projections: interest payments in FY2029 are expected to reach approximately ¥21.6 trillion — more than double the FY2025 level
• Consumer surveys show a majority now expect prices to rise more than 10%; Horie believes the deflationary mindset has already flipped

2026-04-14 · Watch on YouTube

Japanese page: インフレ加速時代の資産防衛術