Issue 7: Japan - Where To Next?

14 November 2024

The Nikkei 225 is down 2.7% since the US elections and 6.8% from the July peak while the yen has  depreciated against the US dollar by 20% since 31  March 2022 when we first made the call.  Trading Post maintains an overweight on equities but recommends hedging against yen weakness. Japan’s private equity market also looks interesting.  Japanese business cycle indicators remain broadly positive, underpinning continued economic recovery and corporate earnings growth. If there is an uncertainty it is around consumption spending.