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Opposing Views on Japan, Wisdom Tree & Japan Macro Advisors

On November 2 NFTRH+ had a spotlight on the Yen-hedged DXJ fund.  We have also looked at Japanese Machine Tools/Robotics company FANUY and Financials, MTU and SMFG in light of the prospects for the continued evolution toward privatization of the Japanese economy.  A good write up on said privatization appears at Wisdom Tree…

Japan Post Privatization and the Democratization of Japanese Finance

Countering this however, is a piece from Japan Macro Advisors…

Japan had 3 recessions in the last 5 years

The first article is more forward looking, making projections about what policy moves, beyond the more vanilla aspects of Abenomics, may do for Japan going forward.  The second is more backward and real-time looking.  As a potential investor (right now, I am more a trader I suppose), I’d obviously be more forward looking.

The latter article sees the fact that corporate profits are growing and yet not translating to the economy as a negative.  I am not so sure about that.  Corporate profits and the stock market, if it continues to follow suit, could well be a leading indicator.

japan corporate profits

Just throwing up a few more ideas after simply charting a bullish bounce pattern in the DXJ in NFTRH+ and then seeing EWI’s Elliott Wave based interpretations.