bullish

Japanese Equities Underpinned by BoJ and Buybacks, but Longer-Term Issues Persist

343 Views02 Jul 2023 13:42
SUMMARY
  • Continued monetary accommodation by the Bank of Japan (BoJ) and hype about corporate governance improvements are the main reasons for the uptrend in equity prices.
  • Unlike the late-1980s, forward P/E multiple valuations have not become completely divorced from the real economy due to the proliferation of value companies, although the Buffet Ratio is elevated.
  • Value companies will benefit the most from the Tokyo Stock Exchange's directive to boost their valuations via an improved return on equity, but buybacks can only help in the short-term.
Begin exploring Smartkarma's AI-augmented investing intelligence platform with a complimentary Preview Pass to:
  • Unlock research summaries
  • Follow top, independent analysts
  • Receive personalised alerts
  • Access Analytics, Events and more

Join 55,000+ investors, including top global asset managers overseeing $13+ trillion.

Upgrade later to our paid plans for full-access.

or
Already have an account? Sign In Now
Discussions
(Paid Plans Only)
Logo
DeSaque Macro Research
Delivering Global Macro Investment Insights
Multi-AssetMacroeconomicsThematic (Sector/Industry)
x