“We’re talking the dollar at ¥125 in 2015 and ¥130 at end of 2016. In this context, U.S. Treasurys will look like a good investment to Japanese life insurance companies and other Japanese investors,” he told the Journal.
Investors are buying into that notion. DXJ and the Deutsche X-trackers MSCI Japan Hedged Equity ETF (NYSEArca: DBJP) are each up nearly 11% this year.According to a recent Reuters poll forecast, investors anticipate Japan’s Nikkei share average to end this year at 21,000 its highest level since lat 1996. The Nikkei 225 index was hovering around 19,207 Tuesday.
Lifting the optimistic expectations, company profits are projected to rise on a weak yen and stronger exports. Domestic consumption is also rising on cheap oil costs and higher wages. [A Good Year for Japan ETFs]
PowerShares DB US Dollar Index Bullish Fund
