Bloomberg (February 4)
Japan is no longer the belle of the global investment ball, but not everyone’s counting her out. At a price-to-book value of 1.1, the Topix is trading at roughly half of 2006 levels. The Topix looks even cheaper compared to the S&P 500’s price-to-book ratio of 2.3. Balance sheets are generally strong and many are poised to prosper on growing demand from China. Goldman Sachs expects “corporate profits in Japan this year will approach 2007 highs.” Deutsche Bank is forecasting returns exceeding 20% for Japanese stocks in the first half of 2011 alone.
Japan is no longer the belle of the global investment ball, but not everyone’s counting her out. At a price-to-book value of 1.1, the Topix is trading at roughly half of 2006 levels. The Topix looks even cheaper compared to the S&P 500’s price-to-book ratio of 2.3. Balance sheets are generally strong and many are poised to prosper on growing demand from China. Goldman Sachs expects “corporate profits in Japan this year will approach 2007 highs.” Deutsche Bank is forecasting returns exceeding 20% for Japanese stocks in the first half of 2011 alone.
Tags: Deutsche Bank, Equity, Goldman Sachs, Investment, Japan
