Japanese Equities: Five Questions of Summer

With most foreigners already underweight Japan, sizeable fiscal and monetary stimuli is in the pipeline, and earnings guidance appears overly cautious. As a result, Goldman Sachs analysts believe Japanese equities’ risk/reward is attractive. Kathy Matsui and colleagues said in their May 27 research piece titled “Don’t Sell in May: Risk/Reward Attractive – Five Questions of Summer” that they expect corporate buybacks to touch ¥7.4 trillion in 2016. japanese equities – TOPIX to hit 1450 in next 12 months Matsui and colleagues point out that Japanese equities have been hit hard so far this year, thanks to a combination of factors such as yen appreciation, earnings…