In this video we look at the outlook for Japanese equities along with the view on the Japanese Yen and how it ties in with the stockmarket. Specifically, the video walks you through a couple of slides of a recent edition of the Weekly Macro Themes report. In the video we talk through the enormous equity risk premium for Japanese equities, as well as a key chart that maps the course of valuations, interest rates, and economic growth. We then review the improving earnings and cyclical macroeconomic backdrop. Finally we look at how the TOPIX (similar situation for the Nikkei 225) trades in relation to the Yen. In particular we review the models for the outlook for the USDJPY and see how the odds are weighted and how this might play into a possible decoupling of stocks vs the currency.
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