Some thoughts about investing in Japan

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I recently published an exclusive article at Seeking Alpha, “Thoughts About Investing in Japan.” I like how SA has incorporated the summary bullet points atop its posts. I’m posting them below here with the original article linked in the aforementioned title. It’s not easy writing about Japanese stocks on SA when fewer and fewer Japanese ADRs trade in the U.S. (you can’t link Tokyo-listed ordinary shares on the site), let alone the matter that I’m focused on smaller caps. Have a look at the SA article and by the way, if you missed it, I launched a small/micro cap quarterly best-idea Japanese stock newsletter (Uguisu Value) in January.

Summary

  • Nomura’s latest investor survey shows Japanese individuals remain long Japan.

  • Demand for Japanese stocks seen exceeding supply.

  • Most-watched stocks include many usual suspects.

  • Thinking of Soros, Templeton, and Marks for Japan 2015-20.

  • Japanese stock idea generation.

Nomura’s Individual Japanese Investor Survey

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The results of the latest Nomura survey of individual investors in Japan (August 14th) show Japanese investors are slightly less bullish — naturally given Ukraine/Russia, Iraq, Israel/Hamas, etc — though they are not getting spooked out of equities. Investors remain upbeat on the yen (correspondingly bearish on the euro) and they say they like Japanese equities best again (most bullish on capital goods and bearish on consumer goods).  Continue reading

Nomura’s Individual Japanese Investor Survey (June 2014)

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Nomura’s (NYSE: NMR) (TYO: 8604) monthly “Individual Investor Survey” was released yesterday. (Here’s my walk-through for May). Japanese investors are slightly more bullish, while they remain concerned about international affairs with a particular interest in forex developments, naturally. Their top sector focus (most appealing/unappealing) was unchanged: they like capital goods and autos, somewhat surprisingly in my opinion; bearish on transportation and utilities, unsurprisingly. Japanese investors seem to always have a place in their heart for higher yielding currencies, hence their fondness for the Australian dollar, though they also like the yen, which is interesting because 65% of respondents see a weaker yen on the horizon. So what investment do Japanese investors like most?  Continue reading

Nomura’s individual Japanese investor survey (May 2014)

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Nomura’s (NYSE: NMR) (TYO: 8604) monthly “Individual Investor Survey” was released late last week. This is worth an investor’s time to flip through for a read on the psychology of the Japanese investor. Nomura also lists participants’ most-watched stocks (keep reading for a screen cap) and includes questions that deal with current developments (this month’s concern the consumption tax hike impact and shareholder meetings). I discussed Nomura’s survey as a resource in my book, Investing in Japan. The survey is one of a few resources that will enhance English-language access to, and understanding of, the Japanese market. Continue reading