More often than not, advisors and clients move too slowly in increasing allocations away from the U.S., thus missing out on much of the International rebounds that have occurred throughout history. This is largely due to Home Country bias and not feeling as comfortable with having exposures to countries and companies with which they aren’t as familiar.
We view Japanese equities as the 7th most attractive investment out of a universe of 34 liquid investable countries. Japan stands out with stronger than average (and improving) fundamentals with below average risk. Furthermore, Japanese equities exhibit attractive value, with the country’s overall value profile coming in at 7th overall in April.