A report from analaysts at JP Morgan Private Bank outline a favourable view for equities in Japan:

  • “In our view, share prices do not yet fully reflect the market’s full potential.
  • Although Japanese stocks currently trade in the midrange of their valuations over the past 15 years, global positioning remains underweight Japanese equities”
  • We think multiples could move higher as global investors come to appreciate the structural shifts underway.
  • Sectors that stand out to us include financials, consumer discretionary (excluding autos), technology, industrials and real estate.”

JPM says Japan is welcoming long-absent inflation and nominal economic growth is moving higher. Also:

  • corporate governance reforms are now strongly encouraging structural change focusing on efficiency and profitability
  • this will result in companies returning more value to shareholders
Goldman Sachs outlook for the Fed is here:  Q1 2022 taper, rate hike 2024