Tuesday, May 28, 2013

Is Japan The New Apple?




Forbes opines: "Many big hedge fund investors have in recent years had a very hard time keeping up with the U.S. stock market and other financial benchmarks against which they are judged. The big market drop in Japan will probably make things even harder for some of them….

“….Prominent hedge fund investors have bet big on Japan this year, often investing in Japanese stocks and shorting the Japanese yen—the so-called Abe trade, named after Japanese Prime Minister Shinzo Abe, who is promoting aggressive fiscal policies to revive Japan’s long-stagnant economy. Billionaire macro investors like Louis Bacon and stock pickers like billionaire Dan Loeb have made big investments in Japan and have enjoyed strong returns as the Japanese stock market soared and the yen fell in 2013.

"But the sharp reversal on Thursday of the Japanese stock market is a reminder of the risks that have long been involved in trying to hit home runs in Japan….

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