This article focuses on an important development for Japanese equities that investors should be aware of. Recently there have been significant outflows from Japan equity ETFs. Typically, outflows of this magnitude send a bullish contrarian signal, and throughout this article, we will put forward some points that temper this bullish signal and round out the case.
The key chart of today comes from an exclusive report on Japanese equities, which drew the conclusion that Japanese equities are undervalued with an interesting potential policy wildcard.
The chart shows that recently, as noted, there has been substantial outflows – indicating a loss of confidence in Japanese equities.