The start of a new bubble
We’ve been telling you here for rather longer than I like to admit that you should have a holding in Japanese equities. Why? Because they are cheap. And things that are cheap usually revert to some kind of mean in the end.
The problem, of course, is that, while we can tell you for almost certain that this will happen (and that when it does you will make money), we can’t tell you when it will happen. That means that you could be holding your cheap Japanese equities for a long time (as I have been) and in the process incurring substantial opportunity costs.
The last few years haven’t been all bad (the strong yen has compensated British holders of Japan for a good part of their stockmarket losses and some funds have done extremely well), but they haven’t been particularly good either.
So what might make this change?
• Read the full editor’s letter here: The start of a new bubble.