EWJ: Good Valuation And Long-Term Outlook With Significant Short-Term Risks In Mind

Jan. 03, 2025 8:33 AM ETiShares MSCI Japan ETF (EWJ)EWJ
Michael Ngan
78 Followers
(9min)

Summary

  • Japan presents significant opportunities amid normalization and corporate reforms in the long-run.
  • Short term risks are significant considering issues such as the weak Yen with appreciation pressure and shaky politics.
  • Equities are relatively cheap compared with global peers but with good reasons.
Fuji mountain and Kawaguchiko lake at sunrise, Autumn seasons Fuji mountain at yamanachi in Japan.

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Thesis: Hold EWJ

iShares MSCI Japan ETF (NYSEARCA:EWJ) presents opportunities from the optimism surrounding Japan's stock market and the potential shift of its macroeconomic growth trajectory. Valuations for domestic equities and growth capacity concerning the sheer amount of corporate spare

This article was written by

78 Followers
I'm Michael from Hong Kong. I focus on consumer discretionary and financial services sector in the US and China. My investment time frame is 0.5-2 years. I hold a bachelors in commerce with high distinction from the University of Toronto, specializing in finance and economics. I am passionate about value investing, economics, and public policy. At the moment, I hold a long-biased and China-biased portfolio, looking to diversify more globally.

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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