Does Japan still merit its place in your portfolio?

Major institutions were laying off Japanese analysts and closing funds last year. The Merrill Lynch Global Fund Manager survey showed Japan’s popularity at a low point, relative to both the rest of the world and to its own history. Since then a number of multi-managers have moved overweight and it has been the top-performing fund sector this year. To what extent does Japan still merit its place in a portfolio? The macroeconomic situation would suggest Japan should be avoided at all costs. At the end of January, deflation accelerated at its fastest pace since 1970. The strength of the ...