Bullish outlook of corporate profits on the horizon?
According to a BofA Merrill Lynch Global Research report, belief in the bull run in Japanese equities remains strong. Allocations to Japanese equities are at their highest since May 2006 with a net 31 percent of global asset allocators overweight Japanese equities. That is up sharply from a net 20 percent overweight in April.
The report also noted that a net 44 percent of global investors say that the outlook for corporate profits is more favorable in Japan than in any other region – the most bullish outlook captured by the survey since November 2005. Japan also remains the region that investors would most like to overweight over 12 months. A net 25 percent say Japan is at the top of their overweight list, in line with April’s reading.
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