Insights Japanese Equities: Progress Underway, but Challenges Remain

Barbara (Bree) Sterne

Sep 03, 2019

Highlights

  • While capital discipline, corporate governance, and buyback trends all bode well for Japanese equities, we do not see enough momentum relative to global peers to meaningfully boost exposure in client portfolios. 
  • Structural issues affecting employment and innovation, the nature of the equity market, as well as the upcoming consumption tax increase and ongoing global trade war, remain headwinds. 
  • Bessemer portfolios have benefited from limited exposure to Japanese equities in recent years. While always evaluating potential catalysts that could change our view, we maintain an underweight positioning. 

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Barbara Sterne
Investment Strategist
Bree is responsible for performing in-depth macroeconomic research and financial market analysis, as well as delivering highly customized asset allocation and investment recommendations to clients.