The stock market is having a moment of truth. A two-week window in late August/early September witnessed so-called “Minimum Volatility” strategies lose their luster, underperforming Value by 4 percentage points. Could this value trend continue?
Prime Minister Shinzo Abe’s Japan is a forward-looking, pragmatic bastion of stability in an increasingly uncertain world. The recent cabinet reshuffle cements the unique position that Japanese politics and policymaking occupies relative to most other democratically elected governments.
Japanese Prime Minister Shinzō Abe and his ruling coalition won a very comfortable majority, but fell short of gaining the two-thirds supermajority required for fast-track constitutional reform in Sunday’s Upper House election. Jesper Koll outlines the key signposts and challenges immediately ahead for Japan.
Japan’s gross domestic product report from last week was stronger than expected, up 2.1% quarter over quarter and annualized, against expectations for a small decline. Jesper Koll discusses the Japan equity investment implications amid the macroeconomic and political environments.
President Trump’s upcoming visit to Japan at the end of the month is very likely to bring a successful resolution of a U.S.-Japan bilateral trade agreement. If we get similar positive news from the U.S.-China trade front, Japan in general and exporters in particular are likely to outperform. Jesper Koll elaborates.
With Japan so far out of favor among investors, is it a contrarian opportunity, or are we continuing to be fooled by the false allure of Japan’s potential?