BBJP ETF

BBJP is a good way to track Japan's markets. Its sector mix is different from what you see in the US. It's cheap and has outperformed other notable large Japan proxies.

We'd rather downplay the weaker-than-expected manufacturing data and focus on a solid recovery in retail sales and a reacceleration in inflation, which will be welcomed by the Bank of Japan. Inflation has been quite choppy due to various government programmes and utility prices.

For investors seeking momentum, JPM Betabuilders Japan ETF BBJP is probably on the radar. The fund just hit a 52-week high and is up 18.95% from its 52-week low price of $45.02/share.

Japanese securities have been gaining momentum lately driven by increased foreign inflow helped by improved corporate earnings and reforms in corporate governance. Along with the optimistic outlook by Berkshire Hathaway on the country, look at ETFs with exposure to Japan.

Things were looking tough for the BoJ as recently as this summer, when the country's core CPI bolted north of 4%, far beyond the 2% inflation target that major central banks view as ideal. The Bank of Japan is being reactive to an inflation threat that may very well be in the rearview mirror.

The debate over the future of Japan continues. Because of its small footprint, we often forget the oversized role Japan plays in the global economy.

It is disappointing that labour cash earnings were weaker than expected in Japan, but consumption held up relatively well. Meanwhile, due to the recent spike in market rates and high inflation, the Bank of Japan is expected to change its YCC policy and forward guidance at its October meeting.

This year has been one of the contradictions in the U.S. stock market, but in July, Morgan Stanley highlighted several warning signs that suggest a bust may hit U.S. equities soon. Higher-than-usual bond-market volatility, resilient Treasury rates, and the strong U.S. dollar could signal trouble.

This year has been one of the contradictions in the U.S. stock market, but in July, Morgan Stanley highlighted several warning signs that suggest a bust may hit U.S. equities soon. Higher-than-usual bond-market volatility, resilient Treasury rates, and the strong U.S. dollar could signal trouble.