William Chin Wisdom Tree Japan Hedged Equity DXJ-N COMMENT Oct 20, 2017

You are playing the liquidity infusion that is going on. It is Europe on steroids. It hedges out the Yen.

This is simply institutional debts. They are taking the yen on a daily basis and converting it back into the US$ and hedging that whole entire situation out of it. The day that the tsunami and Japanese earthquake occurred, he took a position in this which turned out to be an incredibly good run for him, but then he got stopped out in 2013. Thinks there is a long ways to go here.

(A Top Pick May 13/15. Up .04%.) Had thought 2015 would be a consolidation year in the markets and expects we will be in the malaise through to the end of the year. Also, thought the areas of the world, where they were doing a lot of stimulus, would probably play catch-up. Earnings are probably going to be pretty good in the 2^nd half of the year, but the problem is you are going to have a weaker currency.

(A Top Pick May 13/15. Up 0.25%.) This is dealing with a quantitative easing in Japan that he thinks will provide some oomph to their economy over the next 12 months. It is equivalent to what the US did in QE 3. This is a significant program which he thinks will have a benefit. The problem you have is that the currency typically declines when the value of the assets go up, because you are printing more money. You want to hedge the currency out, but he didn’t want to hedge it to the Cdn$. He doesn’t like quantitative easing. Thinks we are kicking down the road the damage that was caused by the financial crisis.

A good ETF. Everybody can recite the bearish case of Japan, aging demographics as well as loads of debt. If you look at what has happened to Japan, imagine 30 years of an overvalued currency and chronic deflation. That makes the corporate sector extremely lean and extremely efficient. The turning point is that the ROE has been elevated for the last few years.

Exposure to Japan with currency hedge on NYSE.
Higher yield and lower multiple than S&P option.
Good long term investment. 
Current valuation attractive for investors.

(A Top Pick Apr 03/23, Up 26%)

This is the hedged version (the Yen hedged to USD), a good thing. So, as the Yen declines, Japanese companies grow more attractive. He remains perplexed about investor apathy towards Japan.

Hedge against inflation. Under appreciated asset class. Japan presenting lots of opportunity. Extra returns against Yen weakness. Very good long term hold. Will continue to hold in portfolio.