Japanese Microcaps with very low valuations

[BlueKelah]

Exactly! , gratefully for small investors the market regulator in Spain (CNMV) requires them to publish some info of his portfolio as its positions, market value, %... Japan Deep Value Top #10 positions are:

• JP3805600008 FUKUDA CORPORATION
  
• JP3604400006 TOHOKUSHINSHA FILM
  
• JP3718600004 NJS CO LTD
  
• JP3875610002 MARUZEN CO LTD
  
• JP3213300001 KATO SANGYO CO LTD
  
• JP3424400004 SENSHU ELECTRIC
  
• JP3936800006 YAMAZEN CORP
  
• JP3767810009 HAZAMA ANDO CORP
  
• JP3644000006 NAKANO REFRIGERATORS
  
• JP3108200001 AGROKANESHO CO
  

In Q4 2017 they bought more shares on Fukuda Corp, Tohokushinsha and Nakano Refrigerators, the another 7 positions were slightly reduced.

Keep in mind that it has been a stellar year for Japanese stock markets on the back of stable global economy and also JCB stimulus. But recently, JCB has been quietly tapering down their stimulus as conditions look to improve. Whilst the language from JCB is that they will continue to be accomodative, if bond yields continue to rise, they will have no choice but to follow US lead in raising rates or scale back further on stimulus == tightening.

How Japanese stock market react to this is anyone's guess, but I am guessing the upside will be limited in 2018. There are still too many negative factors like debt and population affecting the Japanese economy, I am very skeptical that they can sustain things without central bank stimulus and NEGATIVE interest rates!

Caveat emptor