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Opinions Michael Bowman
iShares Japan C$ Hedge ETFCJP.TOBUYApr 01, 2013
Michael BowmanStock price when the opinion was issued
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Japan is very interesting to him right now. People don’t understand what is going on in corporate Japan. After decades, Japanese companies are very adaptable. More of their production occurs in countries they sell in. 60% of Japanese corporations’ production occurs off shore. This time he thinks the macro dynamics line up for Japanese investment. EWJ-N is another way to play Japan and it is good as well.
(Top Pick Oct 5/16, Up 5.87%) The trade is not over yet. It is still positive from a technical perspective. He likes the Japanese market in general. As long as the Yen stays weak he will stay there.
Keith RichardsIt is currency hedged. The downtrend looks to be ending. It has higher highs and higher lows in the breakout. It looks very technically attractive.
Keith RichardsJapan has gone through 25 years that has been lost. They literally lost a quarter century. The Nikkei hit its peak at the end of 1989. Given how their society is aging, and that they can’t do any more in terms of urbanotics(?) and stimulus, we are at the point where you just have to tough it out. He is opposed to anything doing with Japan.
Japan peaked out a long time ago. He thinks it is not going to break out and go back to the old top and go above that. They have had the advantage of reengineering their currency downwards, which has been a great benefit to their exporters. He is attracted to countries that can move their currencies, such as the UK, Canada and Japan.
Investing in the Japanese market, would you choose iShares Japan C$ Hedge ETF (CJP-T) or iShares Japan ETF (EWJ-N)? He would choose this one because it is Canadian listed and a fundamental ETF. It is rebalanced and the selection is based on momentum and value criteria, total sales and price-to-book. The EWJ is based on the MSCI Japan index. He much prefers fundamental indexes versus straight MSCI indexes. Thinks there is more room for the stock to move.