iShares Japan C$ Hedge ETF (CJP.TO)

Chart shows an uptrend in 2013 and is now back testing a trend line. It’s above the 200 day moving average at just under $11, which is another key level of support. Seems to be bouncing off that right now. Japan is not a bad place to be.

Japan had a great run this year. But he thinks they have some serious problems. Aging demographic. Weakening their currency is going to help and this is why they have done so well, but thinks it won’t be repeated in the next couple of years. If we saw a pullback of 15-20% he would get interested.

Still thinks Japan will underperform in the long run. Volatility has been tremendous. Fundamentals have not helped but weaker Yen will help.

Japan has been in a big sleep that they just emerged from with a vengeance. It has done next to nothing for the last 25 years so there is still a lot of value there.

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.

He is the most bearish on Japan. Population has peaked. They can't grow. They are loosing competition to South Korea. Japan will be a lousy place to invest for years and years to come. Worse debt to GDP problem. Doing QE for 17 years and it is not working.