Terminal decline in corporate Japan is at odds with strong market conditions

JOHCM's Scott McGlashan claims Japanese companies must look beyond Japan to defy its depressed stock market.

Aside from the nadir of the Lehman crisis and the immediate aftermath of March’s tragic natural disasters, you have to go back to 1971 to find a time when Japanese stock prices were this depressed. The market is discounting a terminal decline in corporate Japan that is at complete odds with the strong conditions we are seeing across a range of sectors. Much of this compelling value can be found in the small and mid-cap areas of the market, where analyst coverage is often pitifully scant. Investors have understandably been concerned the events of March may have dealt a long-term bod...