Ex-U.S. developed markets, including Japan, have provided no shelter from the recent storm that was ravaged global equity markets.
With the CurrencyShares Japanese Yen Trust (NYSE: FXY) up 2.8 percent over the past month on the back of safe-haven buying of the Japanese currency, the U.S. Dollar Index is off 1.5 percent, a decline that has plagued popular currency hedged ETFs. Over the same period, the WisdomTree Japan Hedged Equity Fund (NYSE: DXJ) and the Deutsche X-trackers MSCI Japan Hedged Equity ETF (NYSE: DBJP) are off an average of 8.3 percent, a decline that is 260 basis points worse than that of the MSCI EAFE Index.
Before leaving Japanese stocks and the aforementioned ETFs for dead, investors might want to consider the view that Asia's second-largest economy could lead a rebound in developed markets stocks.
Looking Into Japan
On the surface, many investors might criticize the lack of inflation, weak macro data and Japan’s corporate ...
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