Mrs. Watanabe

AAA

DEFINITION of 'Mrs. Watanabe'

The archetypical Japanese housewife, who seeks the best use of her family’s savings. Though historically risk-averse, Mrs. Watanabe became a surprisingly big player in currency trading during the past decade in order to combat low interest rates in Japan. See also “Japanese Housewives.” 

INVESTOPEDIA EXPLAINS 'Mrs. Watanabe'

While the name “Mrs. Watanabe” connotes a family matriarch, the term more broadly connotes any Japanese retail investor. Culturally, smaller Japanese investors have sought safe investment options. However, perpetually low interest rates since the 1990s led many to become active in the so-called “carry trade.”

The carry trade is a form of speculation in which investors borrow a low-cost currency like the yen and buy high-growth currency, netting a profit. In recent years, for example, Japanese housewives began accumulating Australian dollar deposits, which yielded a significantly higher rate than they could get at home. 

RELATED TERMS
  1. Japan Credit Rating Agency - JCR

    One of the key credit rating agencies in Japan. JCR provides ...
  2. JPY (Japanese Yen)

    The currency abbreviation or the currency symbol for the Japanese ...
  3. Japanese Government Bond - JGB

    A bond issued by the government of Japan. The government pays ...
  4. Japan Association Of Securities ...

    An electronic security exchange based in Tokyo, Japan. Originally ...
  5. Japan ETFs

    A type of exchange-traded fund that invests the majority of its ...
  6. USD/JPY (U.S. Dollar/Japanese Yen)

    The abbreviation for the U.S. dollar and Japanese yen (USD/JPY) ...
RELATED FAQS
  1. What role do shareholders play in a capital budget?

    Shareholders play an important role in a capital budget because they're the source of equity capital. In corporate finance, ... Read Full Answer >>
  2. Why would you use the TTM (trailing twelve months) rather than the data from the ...

    Public companies report their yearly financial statements along with an annual report. However, financial professionals are ... Read Full Answer >>
  3. What are the long-term trends investors should consider before buying shares of a ...

    The telecommunications sector has undergone significant changes over the course of several decades. These factors center ... Read Full Answer >>
  4. How can an investor reduce interest rate risk?

    Investors can reduce interest rate risk with forward contracts, interest rate swaps and futures. Investors may desire reduced ... Read Full Answer >>
  5. What is holistic marketing, and how can it be applied in business?

    A business utilizing a holistic marketing approach operates under the strong belief that all aspects of its marketing strategy ... Read Full Answer >>
  6. How do government bailouts increase moral hazard?

    Government bailouts increase moral hazard by engendering a business climate in which companies feel they will be protected ... Read Full Answer >>
Related Articles
  1. Economics

    Lessons Learned: Comparing The Japanese And U.S. Bubbles

    Find out what the Japanese and U.S. bubbles can tell us about recovering from financial chaos.
  2. Economics

    Tankan Survey Provides Clues To Japanese Economy

    This quarterly survey is crucial for assessing Japan's economic health.
  3. Insurance

    Understanding Japanese Keiretsu

    The structure of major companies in Japan is steeped in tradition and relationships.
  4. Personal Finance

    The Lost Decade: Lessons From Japan's Real Estate Crisis

    Find out what America can learn from Japan's liquidity trap and credit crunch.
  5. Personal Finance

    Best Websites For Big Pharma Jobs

    If the big numbers (jobs, career options, locations) of big pharma are pulling you toward that industry, here's how to find the opportunities.
  6. Investing Basics

    What is a "Coupon"?

    In the financial world, “coupon” represents the interest rate on a bond.
  7. Investing Basics

    What is a Cyclical Stock?

    A cyclical stock is an equity security whose price is affected by ups and downs in the overall economy.
  8. Savings

    How Safe Are Discounted Gift Card Websites?

    Could you buy a gift card online and find out it's worthless? Here's how to protect yourself (and whether you need to).
  9. Taxes

    Top 4 Ways to Invest Tax Free

    When you're ready to invest, start by looking at these 4 tax-advantaged ways to build your portfolio and your future.
  10. Chart Advisor

    Expect Breakouts in These Stocks Soon

    Watch these stocks this week for a breakout. There are long and short candidates, based on different chart patterns.

You May Also Like

Hot Definitions
  1. Geometric Mean

    The average of a set of products, the calculation of which is commonly used to determine the performance results of an investment ...
  2. Fisher Effect

    An economic theory proposed by economist Irving Fisher that describes the relationship between inflation and both real and ...
  3. Fiduciary

    1. A person legally appointed and authorized to hold assets in trust for another person. The fiduciary manages the assets ...
  4. Expected Return

    The amount one would anticipate receiving on an investment that has various known or expected rates of return. For example, ...
  5. Carrying Value

    An accounting measure of value, where the value of an asset or a company is based on the figures in the company's balance ...
  6. Capital Account

    A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public ...
Trading Center