Aguada notes that for 30 years, "cash was king" in Japan, but with 3% inflation, "people basically make a rational decision... cash is [no longer] the best asset." He states Japanese institutions are moving into new finance spaces. Inflation acts as a forcing function. The massive pool of Japanese household and corporate cash must move into yielding assets to avoid erosion. This benefits broad Japanese equities (EWJ/DXJ) and alternative asset managers (APO) positioning themselves to capture these inflows. LONG. A secular flow-of-funds trade driven by the end of deflation. If inflation proves transient and Japan returns to deflation, cash hoarding will resume.