Japanese equities dropped 5.5% last week, for their sharpest weekly loss in over 15 months. The market is still up 11.8% year-to-date, and in our view, last week marks a healthy—and overdue—correction. The multi-year bull market for Japanese risk assets—equities and real estate—remains intact.
I recently visited the Japanese prime minister’s (PM) offices and met with several senior decision makers to get a firsthand update on what lies ahead. The key takeaway for investors is that the structural bull case for Japan remains intact.
Japan has been among the world’s best performing equity markets thus far this year. WisdomTree has an extensive Japanese toolkit, with 10 distinct Indexes tracked by exchange-traded funds (ETFs).
WisdomTree conducts an annual screening to measure dividends paid in its developed international Index family. The annual rebalance provides a plethora of data about how dividends are changing across regions, sectors and companies.
There is wide debate regarding the effectiveness of Abenomics, but we think that focusing too much on the economic aspects of Abenomics may be missing the point: An equity investment in Japan is an investment in companies rather than economic growth.