Global Investment Strategy - Asia
One of the recent suggestions I have received from several investors is to adopt a global investment strategy. What is it, you may ask. In short, it is a strategy that divides the investment into multiple markets, making use of globalization in order to do so in low rates, giving the investor the opportunity to reduce his risk by depending on multiple markets instead of one. In most global strategies that I have heard so far there is a clear weight to the Asian markets, namely China and Japan, but not only, the Turkish market also show good signs.
The domestic consumer demands in China causes it to overtake the US roll in that section in the short coming months. As for Japan - The last year might be a turning point in Japanese economy which suffers for more than a decade now. The unemployment is at the lowest rate in the last 7 years, real-estate value starts to rise in some places, which is a rare situation in the last 10 year, there are some economical signs that can be observed as an initial process to build an inflation - after a decade of deflation. All the above might be interpreted as a signal to put more attention on the Japanese market. Due to the fact that the Nikkei already soared 36% this year and since the local currency also soard to a level that is expected to influence on export gains, it might be a time for a short turnaround in the Japanese market for the coming months, however, it seems that for the long run it is an interesting market even today.
How to invest in Japan? The most easy way is to use an index that follows this market. EWJ for example is a stock that represents the Japanese Index and follows about 85% of the market share of most of the public companies in this market.
Other options are to trade Japanese companies that already traded in the west stock exchanges, for example Sony, Honda, Canon, Kyocera and more. However, these stocks represents each a portion of the segment that they are belongs to, and this should be taken into account.
The domestic consumer demands in China causes it to overtake the US roll in that section in the short coming months. As for Japan - The last year might be a turning point in Japanese economy which suffers for more than a decade now. The unemployment is at the lowest rate in the last 7 years, real-estate value starts to rise in some places, which is a rare situation in the last 10 year, there are some economical signs that can be observed as an initial process to build an inflation - after a decade of deflation. All the above might be interpreted as a signal to put more attention on the Japanese market. Due to the fact that the Nikkei already soared 36% this year and since the local currency also soard to a level that is expected to influence on export gains, it might be a time for a short turnaround in the Japanese market for the coming months, however, it seems that for the long run it is an interesting market even today.
How to invest in Japan? The most easy way is to use an index that follows this market. EWJ for example is a stock that represents the Japanese Index and follows about 85% of the market share of most of the public companies in this market.
Other options are to trade Japanese companies that already traded in the west stock exchanges, for example Sony, Honda, Canon, Kyocera and more. However, these stocks represents each a portion of the segment that they are belongs to, and this should be taken into account.
posted by Gal Cohen | 11:45 AM
2 Comments:
IMHO the Japanese market is at its high for the year - I think to reduce the exposure to that market for the following 6 months.
Maybe you want to look at the Chinese market for the short term (maybe even long). The technical indicators show interesting position for the short term.
I think you better re-check your analysis. Since your post the Japanese index rose 4%+ and the Chinese one performed much lower than that (<1.5%)
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