What I Learned This Week

A contrary opinion on Japan: only six percent of money managers in a Barron’s survey expect Japan to outperform over the next 12 months. Is it time to double down on Japan?

In Barron’s October 2017 money manager survey, 45% of respondents said they expect emerging markets to outperform over the next 12 months. Of the remaining 55%, 29% chose Europe, 13% chose the U.S., 7% named China and only 6% selected Japan, which is a major contrarian signal to add to Japanese equities (see chart below). Only 6% of money managers chose Japan to perform the best in the next 12 months in an October 2017 Barron’s survey. Source: Barron’s The currency market is sending another contrarian signal. As of November 7th, the JPY short-position increased to 128,000 from 119,000 the prior week—the largest short position on the Japanese yen since January 2014, according to Forexliv…

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