Interesting commentary by Jeff Gundlach via Josh Brown with regards to Japanese stocks. Gundlach is very bullish and has been very right so far. Me, I prefer not to get involved in equity markets that are being driven by an explicit casino effect courtesy of the central bank….
“But the other consequence has been in the Japanese stock market, which has risen by approximately 30% in dollar terms since November. A weak yen is good for exports and helps Japanese industries, he said.
Those who bet that Japan’s unfolding crisis would translate to higher bond yields were mistaken, Gundlach said. Japan has succeeded in keeping interest rates low.
Those who believe that quantitative easing helps stocks markets – and also believe that growth and prosperity through strong exports helps an economy – should be particularly fond of Japan’s equity markets.
Gundlach said it’s likely the Nikkei will be up 20% in dollar terms this year.
“Japanese stocks are cheaper than U.S. stocks,” Gundlach said. “If I was forced to own one stock market, it would be the Japanese stock market.”
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.
Comments are closed.