Japan Might Look Expensive But You Need To Dig Deeper

Japanese Value – more gains ahead? Japan typically isn’t the region you would associate with expensive equities, but according to CLSA strategist Nicholas Smith, there seems to be a growing chorus among investors that the Japanese market, having gained 12% since the start of 2017, is now too expensive. Convexity And Money Volatility Points To A VIX Below 8 However, Mr. Smith argues that the market as a whole is not that expensive, but the most in-demand stocks, particularly low volatility equities, pricey compared to historic multiples. Specifically, Smith opines: Japan’s Topix is cheap: on PE; on EV/Ebitda and the…