Carl Delfeld of Chartwell Advisors looks at Japan and sees that the bull is still there. At the beginning of the year, many foreign money managers were overweight Japan, which contributed to the great gains in 2005. However, the foreign capital flows have slowed and we see the markets down in 2006. iShares MSCI Japan (EWJ) is an exchange traded fund representing the region and is down 7% YTD and 19% off its high in early May.
As the foreign inflows have stopped, the Japanese investors have stepped in, but at a slower pace. With a quality marketplace, it is quite likely foreign investors will come back to Japan. New laws also make it easier for mergers with foreign firms. These three factors, robust corporate activity, along with bank lending, show positive growth in Japan.
If you would like to read Carl Delfeld’s complete report click here: Download 06-12-06TriangulateJapan.pdf
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.