Japan

The case for Japanese equities is simple: most other developed markets look fully valued in comparison. Japan is an exception; Japanese shares trade at a 1.3 price-to-book ratio, less than half that of US stocks. The stocks are cheap relative to their own history. Japan’s stock market currently has a price-to-earnings ratio that is only 37% of its 10-year historical average. The unprecedented flow of QE is also a tailwind for the Land of the Rising Sun. For once, Japan may not flatter to deceive, which is positive.

Chelsea Selection or Elite Rated*: Neptune Japan Opportunities and Baillie Gifford Japanese

*by fundcalibre.com