By Patrick L. Springer
First, new micro and macro forces are at work to make Japan a preferred non-U.S. destination for several years.
With the U.S. dollar at 20-year highs, portfolio managers know that it is typically time to diversify and buy cheaper overseas markets, but where to go? Europe is cheap but challenging, and the I of India is what currently remains best of the emerging markets BRICS grouping.
Japan also is quickly becoming a key partner in U.S. reshoring strategies, especially as an alternative supplier of semiconductors and technology components. The reshoring trend is compounded by the yen’s weakness.
As inflation sparks growth, earnings surprises and inflections of Japan’s under-researched companies will lead to significantly higher alpha capture opportunities.
Source: Barron's
https://www.barrons.com/articles/japan- ... e_20240406
