EWJ: Earnings Growth Needs To Catch Up To Momentum

Mar. 07, 2024 1:02 PM ETiShares MSCI Japan ETF (EWJ)EWJ5 Comments
Ricardo Fernandez
2.58K Followers

Summary

  • Japanese equity market has caught foreign investor attention as it approaches and beats its 1989 top.
  • Factors driving the Japanese market include reasonable valuations, increasing growth with inflation, and improving corporate governance.
  • The iShares MSCI Japan ETF has a mixed outlook, with low revenue growth but accelerating EPS growth and a relatively cheaper valuation compared to the S&P 500.
  • The end-to-zero rates policy may cause unknown complications that warrant caution.
Tokyo Stock Exchange in Japan

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Summary

The Japanese equity market has been steadily rising since 2013 but has caught foreign (US) investor attention in 2023 as it approached and beat the top set more than 35 years ago in 1989. A few days ago, I pondered, what is driving this

This article was written by

2.58K Followers
Experience is difficult to learn. After 30 plus years of critically analyzing the nuts and bolts of businesses as diverse as airlines, oil, retail, mining to fintech and ecommerce plus the macro, monetary and political drivers. I continue to immensely enjoy learning and applying my experience to unravel, comprehend and benefit from new ideas, technology, innovation and business models. In addition, living through multiple crises, tequila, Asia, dotcom, 9/11, the great recession and the Covid19 pandemia, plus a stint at entrepreneurialism (Export, Factoring and Printing) provides for an extraordinary base of experience to be applied across multiple disciplines.

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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