Can Japanese Stocks Defy Sluggish Exports?

As Japanese equities struggle to make headway this year after an explosive 2013, new questions are being asked about the economy’s direction. From an investor’s perspective, we think the sluggish export trend may be masking a more positive environment for stocks.

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Japan: Firing the Third Arrow

Japanese Prime Minister Shinzo Abe’s ability to implement his agenda is politically unfettered. But can he deliver, and will his policies work? We remain cautiously optimistic.

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For Abenomics, the Hard Part Is Still to Come

Prime Minister Shinzo Abe’s “Abenomics” program, designed to revive Japan’s economy, was a big success in its first five months, easily surpassing low expectations. But it’s drifted off course since it began, and the going is sure to get tougher from here. Still, it’s too early to write off this policy experiment.

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Japan and the Euphoric Volatility Trap

Michael DePalma (pictured) and Arnab Nilim When equity markets are buoyant and optimism abounds, fears of volatility tend to subside. But recent events in Japan remind us that euphoria itself can generate turbulence.

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Should Euro-Area Exporters Worry About a Weaker Yen?

Darren Williams (pictured) and Guy Bruten As the yen continues to plummet, exporters around the world are growing concerned that Japanese rivals may gain a competitive advantage. But our analysis suggests that the euro-area economy may not be quite as vulnerable as widely perceived. 

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Investors Vote for Equities as Japanese Elections Near

Takeo Aso and Nicholas Davidson Current bearishness on the yen is reigniting investors’ interest in Japanese equities. In our view, yen weakness is likely to continue and may help boost the Japanese equity market, with undervalued companies poised to benefit most.

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Japanese Carmakers Can Surmount Backlash from China Dispute

Takeo Aso and Atsushi Horikawa The territorial dispute between China and Japan is clouding the outlook for Japanese automakers. But we think that bilateral business pragmatism will eventually trump the current political tensions.

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Is a Japan-Style “Lost Decade” Ahead for the US?

The laborious pace of the US recovery has inevitably fostered comparisons with Japan. But we find several reasons why a protracted slump like Japan’s is unlikely, as my colleague Gerry Paul argues below.

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Why Japanese Equities?

At today’s valuations, we believe that Japanese equities offer an exceptional investment opportunity.

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