In the history of global stock markets, such a major rally is very rare, added Koll.
CNN: How can Japan's stock slump actually be "a sign of health"?
"Other search engines don't tap into what's in people's heads, " Koll says.
Koll says the acceleration of both fiscal and monetary policy is key.
"Bad news would be a supply shock - if you did have a blockade of the Strait of Hormuz or a war in the Middle East, " Koll said.
Wondir's founder is Matthew Koll who, until 2001, was a research fellow in Time Warner 's (nyse: TWX - news - people ) America Online.
Since net stock of private savings is larger than the net stock of public sector liabilities, Koll reckons that the overall effect on the economy would be positive.
Rising oil prices, however, present a silver lining for Japan, which has been struggling with deflation for years, says Jesper Koll, managing director of research of JP Morgan in Tokyo.
This factor is one which struck Koll the most.
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During those years of deflation and up through Abe's election to the premiership in December 2012, Japan had a fiscal policy of "musaku" or "no policy" -- "all talk but no action, " explained JPMorgan's Koll.
CNN: How can Japan's stock slump actually be "a sign of health"?
"It is the corporate sector that is waking up from 10 years of complacency and is starting to invest in more modern technology to stay globally competitive, " says Jesper Koll, chief economist at Merrill Lynch Japan.
"We think they (corporate profits) are going to rise by about 50% over the next twelve months, " said Koll, who also forecasts Japan's Topix -- considered more representative of Japan's stock markets -- will climb to 1, 400 by the end of 2013 -- a rise of nearly 17%.
CNN: How can Japan's stock slump actually be "a sign of health"?
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