Do Japan’s exchange traded funds (ETFs) finally have a chance to pull ahead? After a period of economic weakness in the country, Japan’s economy grew at a faster pace during the fourth quarter, at 3.7%. Analysts, however, are warning that this jump may not be enough to guarantee a continuation.
The Associated Press’ Yuri Kageyama explains that the main growth driver over the October through December period was an increase in corporate capital investment.
This is considered great news, because Japan relies heavily on the health of the U.S. economy. A slowdown would decrease demand for Japanese goods. Japan is expected to continue its growth for much of this year, at a rate of 1%.
But later this year, the woes of the U.S. economy could cave a ripple effect and hurt the country’s growth.
But for now, economists seem to feel that Japan is having some good times.
- ProShares Untrashort MSCI Japan (EWV)
- iShares MSCI Japan Index (EWJ)
- WisdomTree Japan SmallCap Dividend (DFJ)
- SPDR Russell/Nomura PRIME Japan (JPP)
- PowerShares FTSE RAFI Japan (PJO)
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.