The Japanese equity market lagged significantly in 2009, with the IMA Japan sector accounting for 14 of the bottom 20 funds, according to figures from Morningstar, yet some are tipping it for success this year.
On first glance, IMA sector performance figures for Japan do not make for pretty reading. Over the last year, it returned 7.1 per cent against 27.7 per cent for UK all-companies, 31.5 per cent for Europe and 17.1 per cent for the US. But could Japan prove to be one of the investment surprises of 2010? ………………….
………….Alan Steel Asset Management consultant Alan Adam remains cautious. He says: “We still think that the country is in a mess and the demographics are pretty negative. They are very much an export drive economy and that should help but the majority of people are in the 55-60-year bracket and just do not spend the same.”
“Unlike Japan, which promises a lot and produces very little, the US has proved to be one of the most resilient workforces and economies going so that is our surprise call for the future.” ……….
Quote courtesy of Money Marketing
14 January 2010
