Tuesday, 30 January 2024

Japanese small-caps

 Looking for a bit of diversification I've bought a few ISJP: iShares Japanese Small-Cap ETF.  Why?

  • They're reasonably priced, based on P/B and P/E.
  • The yen currently seems very weak vs the dollar, so there's the potential for that to unwind.
  • I don't currently have any exposure to Japan.
  • There are lots of noises about financial reform in Japan at the moment - demanding companies with very low P/B value publish plans on how to resolve it, for instance.  Could spark an improvement in earnings coupled with an improved P/E ratio, for double impact.

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