Three key arguments support the Japanese market: 1) a recovery in profits; 2) a strong incentive from the Tokyo Stock Exchange for companies to improve their capital efficiency; and 3) the shift out of deflation is boosting a market rerating. Risks to these positive arguments are mostly linked to the Yen, especially if it were to rise. Not hedging the Yen in 2024 could therefore be an attractive option.

Summary

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Macroeconomics, Geopolitics, and Strategy
Global Investment Views
Macroeconomic and financial market forecasts

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