“Worries about the economy are making investors feel they have to load up on defensive stocks,” Okamoto said in the Bloomberg article. Also, “return reversal is occurring, with investors rotating from stocks they already owned in large amounts to ones that had initially been less popular. This trend has gone too far and it’ll be difficult for it to continue.”
Potential ETF investors should be aware that the WisdomTree Japan sector ETFs show low volumes, so one should utilize limit orders to better control and execute trades.
WisdomTree Japan Hedged Financials Fund
For more information on Japan, visit our Japan category.
Max Chen contributed to this article.