Macro Minutes: Japan: Are Investors Ahead of Themselves?

In our latest Macro Minutes video, Fisher Investments’ Capital Markets Research Analyst Seth Hersch shares our outlook on Japan and breaks down the composition of Japanese equities, as well as governance-related reforms impacting the market.

Key Points

• Although MSCI Japan’s performance appears strong year-to-date, its outperformance is generally negated when taking into consideration a weakening yen.
• The unique composition of Japanese markets requires being bullish on small, cyclical value equites.
• While optimism surrounding Japan’s reforms is not entirely misplaced, investor enthusiasm may be overblown at this stage.