ETF Trends
ETF Trends

Japanese and South Korean exchange traded funds are down 2-3% year-to-date after turning in strong double digit returns in 2005. A recent survey of U.S. fund managers revealed that 62% were overweight in Japanese stocks. Carl Delfeld, of Chartwell Advisors, feels the accumulations in Asian stocks will continue and the current correction may just be a bump in the road.

iShares MSCI Japan Index (EWJ) has not declined below its 50-day moving average since August 2005. With Japanese markets now more than 8% off their recent highs, it may be advisable to take profits.

Ewj

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.