Pragmatic Capitalism

Practical Views on Money & Finance

Gundlach on Japanese Stocks – Very Bullish

Interesting commentary by Jeff Gundlach via Josh Brown with regards to Japanese stocks.  Gundlach is very bullish and has been very right so far.  Me, I prefer not to get involved in equity markets that are being driven by an explicit casino effect courtesy of the central bank….

“But the other consequence has been in the Japanese stock market, which has risen by approximately 30% in dollar terms since November.  A weak yen is good for exports and helps Japanese industries, he said.

Those who bet that Japan’s unfolding crisis would translate to higher bond yields were mistaken, Gundlach said. Japan has succeeded in keeping interest rates low.

Those who believe that quantitative easing helps stocks markets – and also believe that growth and prosperity through strong exports helps an economy – should be particularly fond of Japan’s equity markets.

Gundlach said it’s likely the Nikkei will be up 20% in dollar terms this year.

“Japanese stocks are cheaper than U.S. stocks,” Gundlach said.  “If I was forced to own one stock market, it would be the Japanese stock market.”

Cullen Roche

Cullen Roche

Mr. Roche is the Founder of Orcam Financial Group, LLC.Orcam is a financial services firm offering asset management, private advisory, institutional consulting and educational services.He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance and Understanding the Modern Monetary System.
Cullen Roche

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