EWJ Invites Consumer Discretionary Concerns

Oct. 06, 2022 6:11 AM ETiShares MSCI Japan ETF (EWJ)EWJ
Valkyrie Trading Society
Investing Group Leader

Summary

  • The EWJ is a very good picture of the Japanese stock market.
  • Industrials dominate the portfolio, and it's a pretty mixed bag. Unambiguously exposed to recession risks, but with average leverage.
  • The consumer discretionary exposures are more of a concern, especially because they are major export industries and responsible for dollar income.
  • Given the quite legitimate concerns of global economic slowdown, we think the EWJ could get cheaper.
  • Looking for a helping hand in the market? Members of The Value Lab get exclusive ideas and guidance to navigate any climate. Learn More »

World Heritage Mount Fuji and Lake Shoji

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The iShares MSCI Japan ETF (NYSEARCA:EWJ) is a pretty good representation of the Japanese stock market layout. The large industrial conglomerates of course command a lot of the capital in the economy, but also the pretty significant

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