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The Nikkei is the most relevant index of Japanese equities, as one of the options to investments in the European stock markets. The Nikkei 225 is the most popular stock index on the Japanese market and is made up of the 225 most liquid stocks listed on the Tokyo Stock Exchange. Being one of the financial circles that has a greater volume of business since the number of purchases and sales that are made is very high, with a large number of operations between investors from all over the world. To the point of becoming an important source of reference for a good part of the financial agents of the planet.
Unlike the rest of the indices, the valuation has been revised downwards in recent months, with a 15%, in the central scenario up to 19,862 points from the previous 23,510. The main reason for this adjustment has been a downward revision of the GAP 2020 consensus of 12%, which has not been offset by the reduction in the risk premium. At the same time, it should be remembered that this year a VAT increase is planned for October 2019. Finally, the recommendation of the brokers is to market their shares since the potential of the central scenario that occurs is 1.4%, with a estimated dividend. 2% performance.
On the other hand, you have an implicit PER in this scenario that would be in 16.8 levels. While, on the other hand, it offers a revaluation potential that today is 1.4%. In other words, much lower than in the US and European equity markets. From this point of view, it is not the best option to make savings profitable because it does not have an attractive perspective to revalue in the coming months. Not surprisingly, their valuations have already risen a lot in the previous months and there is a tendency to a correction in them.
Nikkei 225: more to trade than to buy
Sea cual sea el caso, las recomendaciones apuntan más a deshacer posiciones que a tomar posiciones en este mercado financiero del este. Dicho de otra forma the risks are higher than a few months ago due to the levels at which this relevant international equity index is traded. Where, at this time, there is more probability of losing part of our savings than of gaining them through the purchase and sale of shares and their securities. Despite the fact that it represents an economy as solid as the Japanese one, one of the most relevant internationally.
On the other hand, you should consider whether worth it or not go to this international plaza to make your investments. You should not do it lightly as you may encounter some other negative surprises from now on. And you should never forget that what you are playing is nothing more and nothing less than your own money. You will have no choice but to ponder this decision that you can make in the coming weeks because of its importance. Especially if you have never traded with these markets in stocks.
Your macroeconomic variables
Economic growth is recovering positive rates in line with its medium-term potential, supported by exports and public spending. Private domestic demand will suffer due to the increase in VAT from 8% to 10% which materialized last October. While, on the other hand, EPS estimates are revised downward, as Japanese companies are reluctant to pass on salary increases and increases in raw material costs to final prices. The monetary policy of this important Asian country will continue to be highly accommodative with negative real interest rates until the end of 2020. Another point of reference is that the yen should maintain a downward trajectory in the coming months against the exchange of other currencies. international
All these data that have been pointed out from the Bankinter analysis department should serve to make a choice about what small and medium investors have to do to formalize their investments. Beyond other technical considerations and perhaps also from the point of view of the fundamentals of these financial assets that are listed on the Japanese stock market. To some extent, everything seems to indicate that the time has passed to carry out operations in this international equity market. From this perspective, we will have no choice but to wait for the best possibility to make our selective purchases in this international stock market.
Risks of operating in Japan
Decidedly, operating in this financial market has its risks at this time and it is convenient for small and medium investors to know them. To protect against unwanted scenarios by these. It is not surprising that it is a financial market very volatile where there are large differences between the maximum and minimum prices of their stock values. Much more than in the markets of the old continent since their divergences can approach the 5% or even with much more intensity. With the consequent risk that occurs in the movements opened by financial agents.
While on the other hand, we cannot forget that opening positions in this equity market means taking on higher commissions. Almost double those made in our closest environment. With what we would have improve profitability of operations to make the investment profitable. On the other hand, it must be borne in mind that the Japanese indices trade at night in European countries and this can become one more obstacle to formalizing investments with total security. In other words, we cannot follow them as well as in the stock indices of the old continent.
Little known values
When examining the risks posed by these types of operations, we should not minimize the risk related to ignorance of their listed companies. Or at least most of them, at best. To the point that we do not know which sectors they belong to, cuál es su evolución en los mercados de renta variable o los cambios de accionistas que disponen en cada momento. Se trata de una incidencia que desde luego puede perjudicarnos a la hora de llevar adelante alguna otra strategy de inversión en la bolsa japonesa. Más allá de otros enfoques de inversión que son un poco más técnicos.
This lack of information may be the effect that our investment is not channeled correctly and that even we can lose money in taking positions. Something that can be avoided by opting for more well-known equity markets and in which we operate with a certain frequency. Therefore, the Japanese stock market is aimed at investors with a more aggressive profile who wish to experiment with other financial markets, even if the situation requires these movements from now on. Never in conservative or defensive investors who require other investment options.
Advantages of the Japanese bag
Although on the contrary, these operations also have their positive side and can contribute to correctly channeling investments at all times. One of them is when a exhaustion of appreciation potential Western stock markets and you can use this source to make your money profitable with greater guarantees of success. But this performance occurs very few times a year and through very specific movements. On the other hand, bullish periods in this financial market are very pronounced and you can improve the profitability of your investments with higher percentages than before.
It is also important to highlight the aspect that has to do with distance from a financial market as special as this one in particular. If you want to invest in the Japanese stock market, you have a less aggressive option, such as through the investment funds based on this international plaza. At this time, you have an outstanding offer of international management companies that are carried out under different investment strategies. Even combining them with fixed income financial assets to protect their positions in the most adverse scenarios for the equity markets.
In conclusion, investment funds of these characteristics are focused on longer periods of permanence and in all medium and long cases. Create a stable savings bag for the next few years. With the advantage that you can transfer the funds for free if things do not go as expected by the holders. With a series of somewhat more competitive commissions than in other funds located in other geographical areas. Whatever the case, it is a new alternative to investing that you can use at any time and in any circumstance. Beyond other investment approaches that are a bit more technical.
