Japanese stocks were a disaster in 2014. We have grave concerns about the aging and shrinking demographics that will sink Japan into oblivion. We have discussed this trend in previous newsletters.
But having said this, Japan’s major tax cuts and the launch of their QE liquidity program has positioned their stock market to move up. It will be a repeat of what has happened in America over the last five years, so take some time to look at our own history.
In addition, Japanese companies are showing solid earnings growth and Japanese accounting standards tend to be very conservative. A weaker yen is also helping the Japanese export market.
In the headline above we have listed some opportunities American’s can use to position themselves to participate in the Japanese Bull Market run. These are some of the best performers in the market and we believe these positions will outperform the American indices.