The Easy Money In EM Has Been Made, But Japan Still Attractive

Buying Japanese index futures and shorting the yen was a highly successful strategy employed by overseas investors during 2013 until the yen entered a sideways move that lasted from December 2013 to July 2014. Barclays Macro strategists Ian Scott, Dennis Jose, Joao Toniato and Jason Hart note the move in a recent research note, the index managed to finally claw above the 1300 resistance. Upgrading Japanese stocks from Neutral to Overweight, the analysts cite low valuations, improving corporate profit margins and an absence of the market volatility usually triggered by heavy foreign buying as factors that make the case for…