High volatility and aggressive bouts of style bifurcation dominate the investment landscape in Japan, creating a temptation for market timing that is unwarranted and detrimental to end investors.
This provides a great opportunity for long-term minded investors to deliver value. Specifically, we know that investment success relies on one's ability to buy low and sell high (or to not sell at all), however the evidence suggests that foreign investors in Japan have not demonstrated such a mentality. Recent data from Morningstar shows that some of the largest volumes of buying and selling in recent years come at the market's peaks and troughs respectively, reflecting a pattern of momentum investing. Could Japan strengthen thanks to Trump's administration? The same trend appli...
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