Michael Lindsell: What we're expecting from Japanese equities this year

Holdings will need to "plough through their own furrow"

clock • 4 min read

Now that we are just a couple of days into the New Year, it is interesting to reflect on Japanese markets in 2018.

The Japanese market peaked in mid-January and, one way or another, has been declining ever since. Now it is 21% below its peak in January. Looking at what has driven it down suggests investors anticipate cyclical earnings will be hit. The ten worst-performing sectors, all down between 31% and 43% from the 19 January to 21 December, include shipping, machinery, commodity cyclicals and electronics; all sectors that typically feature at the forefront of any earnings recession. Joining them also were banks and securities companies. Why investors need to look through Japan's macro deterrents ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

Partner Insight: Navigating a new era for investing

Partner Insight: Navigating a new era for investing

Across the developed world, inflation is back and here to stay, says Wellington Management’s John Butler.

Sarka Halas
clock 13 March 2024 • 2 min read
Partner Insight: Should investors go global for more impact?

Partner Insight: Should investors go global for more impact?

Global investing offers scope for broader social impact as well as financial returns.

Sarka Halas
clock 11 March 2024 • 1 min read
Women in Investment Awards winner interview: Omotunde Lawal from Barings

Women in Investment Awards winner interview: Omotunde Lawal from Barings

Supporting the next generation

Katrina Lloyd
clock 07 March 2024 • 1 min read
Trustpilot