Disclaimer
This is not substantive investment research or a research recommendation, as it does not constitute substantive research or analysis. This material should be considered as general market commentary.
Retail investors pulled £100m out of Japanese equity funds in December 2022, according to the Investment Association, making it one of the least favoured sectors. Most popular were North American funds, which saw net inflows of £358m. Retail investors also bought gilts, which probably gives an insight into the reasoning behind buying US equities too: it looks like investors are playing the duration trade, and piling into growth in anticipation of a reversal of course by central banks and an outperformance of high duration assets. In our view, whether this is true or not, other developed world equity markets look more attractive than the USA for 2023. In particular, we think Japan could do well, and given how poor sentiment has been towards the country, this could be a powerful driver behind relative returns.
Kepler Trust Intelligence provides research and information for professional and private investors. In order to ensure that we provide you with the right kind of content, and to ensure that the content we provide is compliant, you need to tell us what type of investor you are.
Continue
