I gave my thoughts on the Japanese market to Covestor’s Sanjoy Ghosh, writing for USA Today:
The explosive stock rallies in China have gotten a lot of attention this year. Yet there’s another Asian market that is also white hot: Japan.
How long will the BOJ keep the monetary floodgates open?
Charles Sizemore, a Covestor portfolio manager and founder of Sizemore Capital Management, think investors in Japanese stocks need to be mindful of two things.
First, Japanese stocks aren’t cheap by global standards. On top of that, the BOJ’s ultra-loose policy is very punishing on the yen and they may lead to currency losses for foreign investors.
“This is very much a play on the Bank of Japan,” says Sizemore. “If you believe that its quantitative easing efforts will inflate the Japanese stock market faster than it destroys the value of the yen, you win. If not, you lose.”
You can read the full article here.