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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