Japan REITs: Hidden Gem to Diversify Your PortfolioJapan has long lost its charm to the international trading community. It has been a boring place to trade in for the past two decades, pretty much. In a mature market like Japan, you can't expect explosive growth like you can find in China.
However, this market offers a great source of diversification and income potential, if you know where you are looking.
The answer lies in Japan REITs. Properties in Japan, be it commercial, industrial, retail, hospitality, or residential, are coveted by mom-and-pop as well as institutional investors from the country and across the APAC region for their stable and (slowly) growing rental income.
The chart shows the largest REIT ETF listed in Japan (blue line) versus JPY and SP500 trendlines. You can clearly see the low correlation between JREIT and SPX.
In times of volatility in the US, and for those with international brokerage capabilities, why not consider this diversifier across the Ocean?
Disclaimers:
GMAS is long a few select names within the captioned ETF.
Investment carries risk.
Investment in foreign dividend stocks is subject to withholding tax. You may be able to claim better withholding tax rate based on your country's double taxation treaty status.
Japan
Nikkei Potential Head and Shoulders?The Nikkei is showing a potential head and shoulders pattern on the 2 hour chart. If we do break below the support at 21620,
then we would await for a lower high which would be a retest of the break.
However, ideally, would like to see a bounce and then a lower high which would make the head and shoulders pattern.
Price is turning at a resistance zone (21800) zone which adds further confluence.
This is a trade that can possibly play out next week. Keep it on your radar!
Short trend continuation on Eur/JpyIs it possible to see a price compression on EurJpy. In fact the price is moving within the channel between the static support identified by 61.8% of the Fibonacci retracement (placed at 120.05) and between the static resistance identified by 50% of the Fibonacci retracement.
Technically, so far, this pair is set downwards. This on short/medium term time frames. With the violation of the EMA 20 daily periods, the price appears to be destined to reach the support area. The one just mentioned. An intermediate target is the support of minor importance located at 120.85. On both daily, weekly and monthly time frames, there was a cross-over of the main EMAs (or 200 perodi with 20). This means that sales on the European currency have not ended. Investors are preferring to move capital to the Japanese currency.
This decline is also fundamentally justified. This because although the ultra-expansive monetary policy of the BOJ is already known and has not been changed for a long time. The ECB, according to Draghi's words and the macroeconomic data of the Eurozone, will also tend to be in the coming months more expansive than she already is. Causing a devaluation of the euro.
Our target is near the price of 120
Overall view of USDJPY - Update of June 24th's week107.900 level which was attempted several times was finally broken. Bears are putting a lot of pressure, in fact we are more likely to test the low of the year 104.830.
Possible targets: @107.000 (+30pips) and @106.000 (+130 pips).
Advice: Stay bearish and sell at any high points while we don't break the 108.000 top level.
Overall view on EURJPY - Update of June 24th weekActual view: After settling and rejecting on the support zone containing the low of the year, prices soared up moving to the old resistance area. Odds of a bull trend continuation remain high.
Possible targets: @123.000 (+65pips) and @123.500 (+110pips).
Advice: Stay bullish and buy at any low while we don't break the @122.000 bottom level.
NZDJPY - Sell on RallyWeekly - Bearish Engulfing
Daily - The trend is downwards
4H - Healthy correction on the ascending channel.
4H - Bearish candlestick pattern "Railway Tracks" on the strong resistance area
Wait for a 4H candle close below 71!
Do your own research and if this matching with mine then you are ready to go!
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Best regards,
Vaido
Mexican peso holiday & central banks are preparing for the worstThe week started quite well for the financial markets and with a huge relief for Mexico in particular. The point is that Trump decided not to impose 5% tariff on Mexican goods. The Mexican peso showed maximum growth over the past year. The Canadian dollar is below 1.33. Therefore a sharp decline in gold and other safe-haven assets against this background can be considered logical and logical.
However, we would not advise relaxing. In fact, this is just one of the episodes. But in general, the picture continues to be rather precarious. According to analysts at Morgan Stanley, heightened market optimism is a mistake of investors. Global economic data is likely to begin to deteriorate. Accordingly, Morgan Stanley recommends selling USDJPY with a target of 105. We will continue to look for points to buy gold and Japanese yen on the intraday basis.
About the Japanese yen. Yesterday, the head of the Bank of Japan, Haruhiko Kuroda, contributed a lot to yen sales in the foreign exchange market. He said that the Central Bank is ready to expand the list of monetary incentives, if it is necessary. Panicking and selling off the yen is not worth it yet. Well, the Bank of Japan is satisfied with the content of the monetary policy and the general state of the country's economy.
Nevertheless, the general trend in the behavior of the leading central banks is pretty clear: all as one declare their readiness to act in response to trade war escalation. Recall, earlier "pigeon" comments were seen by the Fed and the ECB. And the Reserve Bank of Australia, so generally, lowered the rate last week.
We would like to note rather weak data from the UK in particular GDP dropped by 0.4% m / m, in April ( the analysts had been expected a declining by 0.1% m / m).In addition, industrial production collapsed by by -2.7% m / m (experts predicted a decline of -1.0% m / m). It is not surprising that the pound was under downward pressure yesterday. Today we are waiting for data on the UK labor market, which might finish the pound. Well, we will see.
Our trading preferences for today are as follows: we will continue to look for points for selling the US dollar against the Japanese yen, as well as the euro, oil sales and the Russian ruble, as well as buying gold.
"EURJPY: Top and Bottom Analysis" by ThinkingAntsOk4H Chart Explanation:
- Price is on a Descending Channel, and bounced on the Weekly Ascending Trendline.
- Bullish Divergence on MACD.
- If price breaks the channel, it has potential to move towards the Resistance Zones.
- We are looking for buy setups on lower timeframes.
Weekly Vision:
Daily Vision:
Updates coming soon!
Nikkei Wave count and speculative buy zoneThat's all it is at this stage. I am not looking to buy the Nikkei index, but a number of interesting individual stocks mirror this wider theme. Sort of a lower swing high being set and "one more drop" to set a higher low then off we go sort of thing. Let's see.
Short to short-mid bearish, medium term to long term bullish.
Mori-Gumi wave 4 bounce possibleHello,
This post is for me primarily. Here is a relatively undervalued equity paying 4% dividends and a PE of 5. Just another stock that I have decided to chart in my search for undervalued Japanese stocks.
If you think US, EU etc treasury bond yields are low try a negative yield in Japan. A 10 year bond returns -0.05% (yes negative) and a 2 year -0.156 as at the 15th of May 2019. Compared to submitting yourself to a guaranteed loss, some low to medium dividend stocks must start to look attractive to the market.
Anyway, my post is conditional; A long entry may want to wait until a small rise and then a higher low being set before entering. Making it back to the 0.382 fib level would be over 60% and the 0.236 fib level: 32%.
Now, I may have counted wrongly and the 5 wave, wave C down has already terminated (it is rather hard to tell given the price action). In that case, expect higher highs.
Ueki Corp - points to significant Japanese equity undervaluationShort term - short (but not in a position so just waiting),
Medium + LT term long.
Why? Well a couple of reasons. Despite the retraction in sales and profits in the construction industry in Japan as evident from Ueki's results there are some rather signs of value.
I haven't even started a full accounting of undervalued Japanese stocks yet but can see that I will likely buy because:
- Ueki's market cap, for example, is almost 63% lower than its net assets. Compared to U.S. equities that is comparably significantly undervalued. As at December 2018 the average S&P 500 price to book ratio was 2.8 (and this was AFTER the December price drop). Compare that to a P/B value for Ueki of 0.35. i.e. The Company could be liquidated now and would return significantly more than the current price per share to investors.
- Investment Banks are entering long the market - seeing the market as oversold: www.cnbc.com I also read an article a while back that said Morgan Stanley is advising clients to exit US equities which will cause many to look elsewhere in the US and overseas for better value risk adjusted returns: www.investopedia.com I'm not sure if that is the one though,
- Likely due to having been in a 30 year bear market, the Japanese equity market likely has, on average, less downside risk as compared to US stocks: www.bloomberg.com
- My TA points towards a significant appreciation of the JPY vs the AUD, USD, and EUR. If this happens, any returns will magnified. Despite its significant debt load (230% of GDP+) Japanese citizens are willing to take a financial hit buying government bonds with negative interest rates in order to support their Country.
- There are likely better, if not more undervalued, equities out there than Ueki. I feel encouraged to search for some deals.
Thanks for viewing
Possible buy zone Sumitomo MitsuiWhile 3.76% dividend yield isn't very high it is better than voluntarily forfeiting your money to the Japanese government in the form of negative bond yields (I apologise for my apparent lack of civic duty).
Still, I expect a bit of a retrace before heading higher. This is 100% based on the chart and 0% based on fundamentals, although, I may be looking into the Company a bit more in-depth should it hit my price expectations.
Short-term bearish, yet for form a medium term view based on fundamentals.
Fudo Tetra Corp 1385Hello,
I was just searching for low PE / oversold Japanese stocks. I am interested to see if this plays out, as it will be much better value sub 750 and well worth a look.
Short to medium term short and medium term long. If you can snag some shares around 600 yen each and it retraces only 38% of the previous deep drop (2004 - 2010) - the you could go 5x easily. I am not sure chat would cause an increase like that at this stage as I haven't looked deeper into the Company than the chart but will if my targets are met.
Thanks for viewing.
Nikkei: Long term Buy Opportunity.The index is approaching the 20,970 1W Support creating optimal conditions for a long term buy towards the 23,000 Resistance. Nikkei is on an uptrend since the December bottom (1M MACD = 405.550, RSI = 50.348) and only a breach of the 20,360 Support can distress that. The Golden Cross (MA50 over MA200) may come later to confirm that. We are long on NI225 with TP = 23,000.
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