Stock markets around the world have endured a nightmare start to 2016 and Japan has been one of the worst performers. The Nikkei 225 index has fallen by 22pc so far this year.
Jim Mellon, the entrepreneur and investor, who has over the years made some astute calls and identified various key trends or "money fountains", is among those who believe that Japanese shares are now bargains.
Mr Mellon told his 362,000 followers on Twitter that he expected the Tokyo stock market to rebound – rewarding brave investors who buy now. He said: "I suspect there is a 1000 point up-day just round the corner, so load up. Cheapest market."
sadly the Nikkei is not perfroming to plan; but I suspect there is a 1000 point up day just ro8d the corner so load up. Cheapest market
— jim mellon (@jimmhk) February 12, 2016
A one-day 1,000 increase from the current level of 14950 would represent a near-7pc rise.
Japan has regularly scored well on our map of the world’s cheapest stock markets. At the start of the year it was trading below its long-term average on three of the most popular valuation ratios – price to earnings, price to book and "Cape", the cyclically adjusted price to earnings ratio. The market has now become even cheaper.
| Date |
Price to earnings ratio |
Long-term average |
Price to book ratio |
Long-term average |
Cape |
Long-term average |
|---|---|---|---|---|---|---|
| Start of January 2016 |
16.1 |
34.7 |
1.4 |
1.9 |
25.7 |
44.2 |
| End of January 2016 |
14.5 |
34.6 |
1.3 |
1.9 |
22.9 |
44.2 |
Sources: Hargreaves Lansdown and Thomson Reuters
In an interview with Telegraph Money last summer Hideo Shiozumi, who runs Legg Mason’s Japan fund, the best performer over the past five years, said changes in the Japanese economy aimed at ending its “lost decades” had made him more bullish than ever about the Tokyo stock market.
Before the sell-off Japan’s stock market had been rising since the start of 2013.
The country’s shares had been helped by ambitious reforms introduced by Japan’s government, which aim to spark growth after decades of stagnation.
Pressure is being put on Japanese businesses to become more shareholder friendly, by paying dividends for example. Citizens, meanwhile, are being encouraged to invest rather than leaving savings in cash.
But some commentators believe that the reforms have stalled. One analyst at BNY Mellon, the asset manager, said: "This could go down in the history books as the death of Abenomics."
• ‘I’ve never been more bullish about Japan’
• Isa fund tips: best Japan funds
• Newsletter: Get a weekly round-up of investment ideas
• Put an investing question to our experts: moneyexpert@telegraph.co.uk
0 nhận xét:
Post a Comment