A Warning from Japan
Wednesday, February 14th, 2018 Categories: Equities, Japan
Shift to defensives consistent with macro signals
Japan has had a good run at the top of our regional equity model. A shift in risk appetite like the one earlier this month normally implies a change in regional leadership. The yen has broken up through an important trend against the dollar and our Japanese equity sector model is reducing the underweight on defensives, unlike any other developed market. Four good reasons why we expect to downgrade to Japan to neutral soon.