Insight Japan - November 2010

The root of all money

After two quarters of providing some of the best returns amongst developed markets, Japan couldn’t manage to repeat its success. While other markets shot up, Japanese equities failed to eke out a positive return. An explanation for investors’ continued lack of regard for
Japanese risk assets is not hard to find – the apparently unstoppable rise of the Yen. While investors were prepared to climb the wall of worry before, this time the crampons and ropes have been cast aside in favour of pickings elsewhere.