Investment opportunities in Japan for those prepared to search
its depressing macro-economic climate could turn out to be a gold mine according Pictet Asset Management.
Pictet Asset Management head of Japanese equities Richard Heelis, says that despite a 20 year low in equities 'there's nothing quite like a weak market to stimulate a positive response'.
He underlines the necessity of focussing on companies with 'secure earnings prospects and relatively strong balance sheets', but points out that corporate Japan has recently shown a greater interest in restructuring and change. Particularly positive signs are rising dividends along with a growing interest in share buybacks suggesting that companies are starting to realise the importance of returning earnings to shareholders.
Heelis says: “Things are likely to get worse before they get better … But, for those investors willing to look beyond the obvious bad news, there are stock picking opportunities to be taken.”