Deep value emerges in Japan

Regular readers will know that we have been fans of Japanese equities for some time now. Last year, was fantastic for those who followed us in. This year hasn’t been so good – the Nikkei is down 14% from its levels at the beginning of the year.

The good news is that, according to Andrew Lapthorne of Société Générale, “deep value” is beginning to emerge in the Japanese equity market.

Lapthorne uses a version of Benjamin Graham’s deep value screening process and has found it to be pretty successful in the past.

Today it indicates that with net profits on the rise in Japan (up over 25% in the first quarter of this year), “the only developed market region seeing value emerge is Japan.”

Add in the “potential for more central bank action”, and a “yen hedged foray” back into Japanese equities “may be the better choice than simply continuing to pay over the odds for more expensive US and European equity names.” We’d agree with that.

• Stay up to date with MoneyWeek: Follow us on TwitterFacebook and Google+

MoneyWeek magazine

Latest issue:

Magazine cover
The dollar's going up

Why your British stocks will follow

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 4 FREE Issues

Hedge fund manager Hugh Hendry: 'It felt like the sun rose only to humiliate me'

In a series of three short videos, Merryn Somerset-Webb talks to Hugh Hendry, manager of the Eclectica hedge fund, about everything from China to the US, Europe, and Japan.


Which investment platform?

When it comes to buying shares and funds, there are several investment platforms and brokers to choose from. They all offer various fee structures to suit individual investing habits.
Find out which one is best for you.


17 December 1900: The Guzman Prize is announced

On this day in 1900, Clara Guzman stumped up 100,000 francs prize money for the first person to communicate with and receive a response from another planet.