Mark GrammeriShares Japan ETFEWJCOMMENTDec 13, 2006

Japan is coming out of a long bear market and has performed consistently over the past year along with the yen stabilizing. Warren Buffet has been buying over the past year. There are lots of industrial, including electronics companies, as well as financials in its holdings. It is a good way of diversifying your portfolio.

The Yen will remain suppressed while valuations won't be as demanding in Japan as in parts of the US market.

Great option for Japan oriented investors.
Low valuations presenting buying opportunities. 
Lower risk with under valued assets.
DXJ (hedged equity fund) also a good option. 

Covers largest cap Japanese stocks.
Good for Japan equity exposure.
If bullish Japan - good product.
EFJA - better option for Canadian investors. 

Institutional starting place for exposure to Japan. If you don't want exposure to the yen, use the DXJ. He'd choose EWJ and accept the currency as part of the total return. You might also look at the smaller cap ETFs for the long-term.

vs. EWY (Korea) Japan is where many have made big mistakes, getting too bullish, too early. He struggles with its demographics and GDP, but tailwinds include nobody believes in it anymore. Better to look at SCJ-N (small caps) which trades below book value. Catalysts in Japan include a major fiscal stimulus. He prefers EWY (South Korea)--see top picks, which has been caught in the US-China trade war.

(A Top Pick Feb 26/18 - Down 9%) Still believe in it. He is seeing inflation perk up, some structural reform and the ROE is the higher than in many areas of the world.

Japan has been a tough place to invest for three decades. The difference between past rallies and the current one is that now the Yen is very cheap, and Japan is very export-oriented. The catalyst will be inflation. EWJ has been soaring and he's been very bullish on it.