Equity rebound coupled with rise in yen promising handsome returns

Japan has lagged equity markets around the world as well as other asset classes such as property and...

Japan has lagged equity markets around the world as well as other asset classes such as property and commodities. Currency weakness has had the effect of further depressing returns to overseas investors. However, we expect a rebound in Japanese equities and, if this were to be coupled with a reversal of the yen weakness, investors can expect handsome returns. An oft repeated myth concerning investment in Japan is that a strong yen is harmful for the economy. The reasoning behind this argument goes like this: Japan is a country that is reliant on exports for growth and therefore a strong ye...