Economics
Strategists Shun Aging U.S. Bull Market for a New One in Japan
- Morgan Stanley upgrades Japan stocks, downgrades U.S. equities
- One of year’s worst performers becomes a strategist favorite
Japanese Equities: Further Upside to Go?
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Strategists are coming around to the idea that Japan is the place to be in 2017, with Morgan Stanley the latest to embrace one of the year’s biggest comeback stories at the expense of America’s aging bull market.
Morgan Stanley joins Japan’s largest brokerage Nomura Holdings Inc. in saying that the country’s bull run will continue into 2017 and recommends selling U.S. shares to fund the trade. It’s a dramatic turnaround after investors fled one of the worst performing markets earlier this year as traders lost faith in Abenomics. The Topix index has rallied for a 12th straight day to the highest level since January.