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Stocks

Wanted: Stocks that can survive monetary tightening

Investors look to qualitative factors like business models

Orix is bidding for the rights to operate Kobe Airport as part of a consortium.

TOKYO -- As rising interest rates across the world cast a shadow on stock prices in Japan, investors are on the hunt for issues backed by strong business models that can continue to flourish under tighter monetary conditions.

David Buckle of Fidelity International compares the market's current focus on stocks to a scene from the movie "Jaws," where the protagonist is driven up the mast of a sinking boat after a shark attack. With interest rates in negative territory, investors today are buying more equities to secure whatever returns they can. But they will stop relying on stocks once rates recover, and funds will quickly drain out of these assets, he predicts.

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