Forget what you’ve heard about Japan
By International Adviser, 28 Aug 18
It’s not just another false dawn in the land of the rising sun, argues Rathbones’ Ed Smith
Click through the slides below to find out why
Earnings momentum is improving in Japan at a faster rate than most other equity markets: Topix earnings are 153% higher than in 2012 – more than triple the growth of S&P 500 earnings.
Japanese equities would be vulnerable if China’s growth were to slow substantially, or the yen increase sharply (reducing demand for Japanese exports), but we see these risks as unlikely for now.
Against all odds, Japanese equities remain strongly supported by robust and shareholder-friendly companies and a thriving economy.
It’s hard to see what other good news can come along to make foreign investors finally take notice.
Chart 5: profits are historically high – what’s not to like?
Tags: Investment Strategy | Japan | Rathbones
