The Tokyo market is cheap

global forum follow-up

In the months since the Global Markets Forum in Cape Town, aggressive trends have led investors to put money in Japan - an area that had for a long time been considered risky and oversold

Since the Investment Week conference in Cape Town, which was held at the end of February, we have become more aggressive in terms of our investment style. We thought that the Japanese equity market was cheap, oversold and likely to go up. This was due to sell signals from defensive stocks that we were holding towards the end of last year. Low-beta stocks, in our opinion, had become overbought and overvalued while high-beta stocks had become oversold and undervalued, which is a reflection of our contrarian, value-based approach to investing. During the market weakness to mid-March, many de...