Japan Stocks Are Among the World's Most Attractive: State Street

[specuvestor]

Your question getting answered. Akan datang

TOKYO (REUTERS) - Japan's real wages, which are adjusted for inflation, posted their first gain in 11 months in November, helped by a rise in year-end bonuses, but economists warn that wages are unlikely to keep up with general price increases, which could hurt consumption.

The cautious outlook suggests that the government still faces obstacles in generating a sustained increase in consumer spending needed to support faster economic growth.

On the positive side, some major companies have said they are open to raising wages this spring at annual negotiations with labour unions.

[BlueKelah]

Your question getting answered. Akan datang

TOKYO (REUTERS) - Japan's real wages, which are adjusted for inflation, posted their first gain in 11 months in November, helped by a rise in year-end bonuses, but economists warn that wages are unlikely to keep up with general price increases, which could hurt consumption.

The cautious outlook suggests that the government still faces obstacles in generating a sustained increase in consumer spending needed to support faster economic growth.

On the positive side, some major companies have said they are open to raising wages this spring at annual negotiations with labour unions.

http://www.businesstimes.com.sg/governme...on-outlook

So a 0.1% YoY wage gain is that big of a deal?(vs a CPI gain of 0.9% YoY, still missing the 2% target)

Do you think that confidently shows their economy is improving well? Not to mention this is on the back of massive central bank stimulus from Abe gov, what will happen if BoJ doesnt do any more QE?


This is what i found googling japan wages on FT site. Please google for full article link.
Japan real wages climb but previous gains erased by revisions
[Marcel Thieliant, senior Japan economist at Capital Economics, attributed most of the jump in cash earnings to a jump in overtime earnings and bonus payments, noting that growth in hourly wages for part-time workers slowed sharply form 2.1% to 1.5% in November, the slowest increase since August 2016.

He added:
Over the past twelve months, base pay edged up by 0.4% y/y, barely faster than the 0.2% y/y increase in 2016. And with productivity growth strengthening again recently, the Bank of Japan’s 2% inflation target remains out of reach.]

Yeah I guess my question is getting answered. Answer looks like their economy is still crap with miniscule wage gains since the QE started. 

I will akan datang the 2 trillion Yen stimulus Abe has planned for this year, might in fact be good to buy a Topix index tracker just for this year, to ride on the inevitable gains as a lot of that 2 trillion will be flowing into their stock market for sure.

[specuvestor]

The context is 15 years deflation. Inflection is what markets look at

On the other hand stimulus has been there for years. What has changed is key

Yes Akan datang

[psslo]

I guess the real test of the pudding is whether you can profit from the market.

I started investing in Japanese net-net value stocks (about a dozen counters) end of 2016. Late 2017, I took some profit off the table (~23%), re-plow them back with additional capital, and today I see an overall paper gain of 30% on my Japanese portfolio. Yes, there is slight currency exchange loss, but still respectable for a year old performance.

For someone who is investing on the ground, I do feel optimistic about the Japanese market.

Here's another article from Fundsupermart regarding their view of the Japanese market. Just ignore the sales pitch on the unit trusts at the end.
https://secure.fundsupermart.com/fsm/art...cale=en_us

[edragon]

I guess the real test of the pudding is whether you can profit from the market.

I started investing in Japanese net-net value stocks (about a dozen counters) end of 2016. Late 2017, I took some profit off the table (~23%), re-plow them back with additional capital, and today I see an overall paper gain of 30% on my Japanese portfolio. Yes, there is slight currency exchange loss, but still respectable for a year old performance.

For someone who is investing on the ground, I do feel optimistic about the Japanese market.

Here's another article from Fundsupermart regarding their view of the Japanese market. Just ignore the sales pitch on the unit trusts at the end.
https://secure.fundsupermart.com/fsm/art...cale=en_us

I concur. Invested in a mutual fund, Japan Growth on 15 Nov 2016, today it is up 21%.

[opmi]

Hi VBs,

does anyone know of any good Japan unit trusts under the CPF Inv Scheme?

Thank you.

[weii]

Dear opmi,

Over the last 1 year period, it seems like LionGlobal Japan Growth Fd SGD-Hd is the best performing Japan unit trust under CPF Inv Scheme with a return of 33.61%.

Over the last 1 year period, United Japan Small and Mid Cap SGD-H is the overall best performing Japan unit trust with a return of 54.18%. However, it is only available for subscription by cash or SRS monies only.

[opmi]

Dear opmi,

Over the last 1 year period, it seems like LionGlobal Japan Growth Fd SGD-Hd is the best performing Japan unit trust under CPF Inv Scheme with a return of 33.61%.

Over the last 1 year period, United Japan Small and Mid Cap SGD-H is the overall best performing Japan unit trust with a return of 54.18%. However, it is only available for subscription by cash or SRS monies only.

Thanks, weii. 

Not many Japan CPF UTs. See below. If believe in Japan comeback story, probably wont do JPY/SGD hedged.

so choices left (a) and (d). 

NUMBERS at the back - Sharpe Ratio* Expense Ratio 1-Year Performance 3-Year Performance (annualised) [back in Sep 2017.] 

e) Eastspring Investments - Japan Dynamic Fund Class As (hedged) Higher Risk – Narrowly Focused – Country – Japan CPFIS-OA 0.50 1.55% 48.88% 12.31%

a) LionGlobal Japan Growth Fund (SGD) Higher Risk – Narrowly Focused – Country – Japan CPFIS-OA 0.81 1.65% 24.27% 10.95% 

b) LionGlobal Japan Growth Fund SGD-Hedged Class Higher Risk – Narrowly Focused – Country – Japan CPFIS-OA 0.52 1.65% 33.03% 10.42%

c) Nikko AM Japan Dividend Equity Fund-SGD Hedged Class Units Higher Risk – Narrowly Focused – Country – Japan CPFIS-OA 0.74 1.72% 30.30% 11.99%OA 

d) Nikko AM Shenton Japan Fund (S$) Class Higher Risk – Narrowly Focused – Country – Japan CPFIS-OA 0.61 1.11% 31.15% 8.78%

[oinkoink1999]

Dear all,
I was looking at NIKKO Japan UT and I saw the following:

Nikko AM Japan Dividend Equity SGD - Cash SGD Equity 1.225
Nikko AM Japan Dividend Equity SGD Hdg - Cash SGD Equity 1.355

May I know what is the difference between these 2? I know that one is hedged against JPY but what about the other one? I check that the funds allocation is the same.

~oinkoink

[specuvestor]

The second one should be hedged SGD against JPY. It means if SGD appreciates against JPY, the second one will have better return against the first

But longer term hedging has costs, so you might need to have a secondary consideration of SGD / JPY view. If no view just buy first one.