Japan Is A Great Market For The Japanese, But EWJ Hits Some Wrong Notes For Foreign Investors

Summary

  • EWJ seemed like it could be interesting because Japan in many respects is one of the most attractive markets in the world.
  • But selectivity matters here, especially when balancing FX considerations.
  • Moreover, the Japanese economy has a lot of global industrial exposures, which are subject to demand trends abroad.
  • Overall, they either risk on FX or they risk on foreign demand drops.
  • Looking for a helping hand in the market? Members of The Value Lab get exclusive ideas and guidance to navigate any climate. Learn More »

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Japan is an interesting market now due to economic factors and its ability to benefit from inflation. Therefore, the iShares MSCI Japan ETF (NYSEARCA:EWJ) came across as interesting to investigate. However, selectivity does matter when making the

While we don't often do macroeconomic opinions, we do occasionally on our marketplace service here on Seeking Alpha, The Value Lab. We focus on long-only value ideas, where we try to find international mispriced equities and target a portfolio yield of about 4%. We've done really well for ourselves over the last 5 years, but it took getting our hands dirty in international markets. If you are a value-investor, serious about protecting your wealth, us at the Value Lab might be of inspiration. Give our no-strings-attached free trial a try to see if it's for you.

This article was written by

The Valkyrie Trading Society is a team of analysts sharing high conviction and obscure developed market ideas that are downside limited and likely to generate non-correlated and outsized returns in the context of the current economic environment and forces. They are long-only investors.

They lead the investing group The Value Lab where they offer members a portfolio with real time updates, chat to answer questions 24/7, regular global market news reports, feedback on member stock ideas, new trades monthly, quarterly earnings write-ups, and daily macro opinions.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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