Please note we are adding DXJ to Investing Ideas today. CEO Keith McCullough explains why below.
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Long Japan remains the back-door way to be long lower-volatility-lower-valuation-liquid-equities. Unlike in Europe, USA, and China, Japanese growth data is actually accelerating too (PMI accelerated in July to 51.4 from 50.1 in June).
Pardon? Buy Japan as both the absolute (rate of change) and relative momentum of its growth factor is beating China and Europe? Yep. That’s the really cool kids’ portfolio – long AMZN, SBUX, and Nikkei!
Oh, did I mention that Japan’s rate of change in growth will be accelerating in the 2nd half of 2015 as the beloved navel gazer market (USA) slows? What the un-cool kids own are basically US cyclicals (I think they’re now called “value” stocks):
- Industrials (XLI) down another -0.9% yesterday (down -4.4% in the last month)
- Dow Transports down another -2.1% yesterday (down -4.1% in the last month)
- Russell 2000 down another -1.1% yesterday (down -3.0% in the last month)
So much for the “global growth is back, buy reflation” idea…