UBS Wealth's CIO: Japan is bigger risk than China for 2014

Alexander Friedman, global CIO at UBS Wealth Management, sees Japan as ‘more of a risk' to investors than China in the coming year.

This view is reflected in the firm's strategic asset allocation, which it recently adjusted to take off a Japanese equity long position. The wealth manager also remains short the Japanese yen, expecting the currency to weaken further, as concerns are mounting over the success of Abenomics. "The third arrow of Abenomics does not seem to be succeeding, so Japan may have to go back to the first arrow, which will push down the yen," Friedman said. "The air has gone out of the Japanese market a bit, and we could even see a debt run if people lose faith in the government's ability to man...