If we go up in 2013, Japanese equities are my favored picks, thanks in part to the newly elected government’s plan to stimulate by 10-15 trillion yen. Aside from manipulating the yen lower, the LDP isn’t fucking around with China and intends to bulk up on defense spending, as well as domestic infrastructure spending. They’ve ordered the Bank of Japan to ‘bend the knee’, laying the ground work for a renaissance in Japanese equities.
Exporters should do best, as the rise of foreign currencies boosts earnings. You can short the yen via YCS.
My top pick is HMC, followed by TM. Those are the lay ups.
Some others stocks on my radar include KUB, NMR, MTU, CAJ and SNE. Truth be told, there aren’t any expensive Japanese stocks that are traded in the US. All of them trade under 2x sales.
If individual equities isn’t your thing, consider ETFs NKY, JOF or EWJ.
I’ll be advantageously bulking up on HMC until it is my largest position.If you enjoy the content at iBankCoin, please follow us on Twitter