Posts filed under “Index/ETFs”
As of late, I have been intrigued by Japan. It is a part of the world that investors seem to detest ignore, despite signs of technical improvement.
I’ve talked about this in the office, and with some of our clients who either own specific Japanese names — or live there. The thought process is Japan is a potential surprise in 2011.
I first spotted this on FusionIQ; The reason was due to it flipping back and forth between a Neutral and a Buy in October. EWJ is a VERY interesting chart — much more so than the Nikkei Dow; EWJ is in a nice uptrend that slipped over its the December 2009 highs earlier this month; It just got over its April 10 highs this week.
Here are 10 Reasons I want to own some Japan for 2011:
10 Reasons to Think About Japan
1. Everyone seems to hates — or just ignore — Japan as an investment; its widely disliked for its bad demographics, aging population, ongoing MULTI-DECADE recession.
2. The chart! Nice uptrend, new highs.
3. Institutionally and on Main Street, Japan is VERY under-owned.
4. The island nation is still the 2nd biggest economy in the world in real (not nominal GDP) dollars; they are a huge exporter, and an industrial powerhouse.
5. Proximity to China: As it grows, Japan has easy access to even cheaper low end manufacturing. The high value engineering and design work stays in Japan, but the toxic smokestack industry moves to the mainland.
6. Improving global economy could help Japan’s export business.
7. If China rescues Europe, Japan benefits.
8. The country has shown long term resilience to misfortune — the only nation to be nuked (2X!)
9. Modern infrastructure, highly educated, excellent work force; forward thinking gadget-head consumers.
10. Consumer prices are anticipated being flat next year — the 1st time after 3 years deflation.
And did I mention I like the chart ? Note how many times EWJ got turned back at $11. What would get me really excited was a high volume breakout over $10.90-11.
EWJ iShares Japan (10 Year Weekly)
EWJ iShares Japan (12 Month (Daily)
All charts courtesy of FusionIQ
My pal David Rosenberg points out that the Value Line Arithmetic Composite Index is at an ALL TIME HIGH. (This is an equal weighted price index of the 1650 stocks surveyed by Value Line, averaged daily). Dave writes: “The average stock, by the way, according to the Arithmetic Value line index, just hit a new…Read More
Quick: What do great symphonies, great novels, financial markets, and the conversations of clients and therapists have in common? Answer: All follow distinctive themes. Much of the meaning that we find from all of them lies in our ability to track these themes across their many shifts and permutations. A composer or novelist brings themes…Read More
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> I am especially pleased to present today’s Think Tank piece by James Bianco. Jim has run Bianco Research out of Chicago since November 1990. He has been producing fixed income commentaries with a circulation of hundreds of portfolio managers and traders. Jim’s commentaries have a special emphasis on: money flow characteristics of primary dealers,…Read More
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As previously announced, both Citigroup and General Motors will officially get the boot from the Dow Jones Industrial Average this morning. Replacing them were Travelers Corp. and Cisco Systems, respectively. So long . . .
As I expected back in 2007, GM is out of the Dow, being replaced by internet powerhouse Cisco (CSCO): Let’s start a pool: At what point in the future will General Motors (GM) ignominiously join Eastman Kodak (EK), Woolworth and others and get tossed out of he Dow Jones Industrials? And, who will replace them?…Read More