Daily Management Review

David Rosenberg Suggests Buying In Japan Which Is The 'Most Under-Owned Stock Market On The Planet'


10/29/2017




David Rosenberg Suggests Buying In Japan Which Is The 'Most Under-Owned Stock Market On The Planet'
Veteran market watcher David Rosenberg is finding places to put money to work even though he may be one of Wall Street's biggest bears.
 
And travelling half way around the world to do that is the Gluskin Sheff's chief economist and strategist.
 
"The one part of the world which looks very good to me right now, a great turnaround story that's under-owned, is Japan. The Nikkei is breaking out," said Rosenberg said in a television interview on Friday.
 
He added: "I think even a child could see that the 30-year secular downtrend has been broken over the course of the past couple of months."
 
Over the past three months, there has been a rise of nearly ten percent in the Nikkei 225, Japan's benchmark stock index. So far this year, it's now up 15-percent. But it's still about 56 percent way from its all-time high hit in 1990.
 
Noting that "almost everybody else in the world is", Japan has one of the few markets that isn't trading expensively to its historical price earnings ratio, according to Rosenberg.
 
After the 2008 financial crisis, Rosenberg was one of Wall Street's first strategists to turn positive. it would be like playing Russian Roulette with your money by investing in U.S. stocks right now,, he has suggested.
 
Fresh stock market records were creating a false sense of security, he had warned in June earlier this year.
 
Stocks seem to be firmly holding onto its win streak despite his warnings. The major indexes for the week wrapping up the final full week of October on fire. While the Dow set an intraday record, the Nasdaq and the S&P 500 closed at fresh record highs, on Friday. And locked in seven weeks in row of gains are the S&P and Dow now.
 
Japan, a country he believes is in a mid-stage economic cycle versus a late one, is the country that Rosenberg is still bullish on despite the momentum in the U.S.
 
Plus, even with the North Korean missile threat lurking under 600 miles away, he doesn't think investors should shy away from Japan.
 
"What's interesting in Japan is that the small cap stocks are starting to outperform large cap stocks. So, what that's telling me is that this is more than just buy Japan because of the weak yen. This is actually a much more fundamental story that people are missing," Rosenberg said.
 
"Japan is probably the most under-owned stock market on the planet from a global portfolio manager perspective," the economist added
 
(Source:www.cnbc.com) 






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