The tailwinds for Japanese equities

Today’s AFR article with Talaria Co-CIO Hugh Selby-Smith focusses on the rally in Japan’s sharemarket, which sent the benchmark Nikkei 225 to fresh multi-decade highs on Monday, and could continue to outpace its global peers as corporate reforms and cheap valuations attract more investors.

Hugh said when Talaria increased its exposure in Japan several years ago, the average price-to-book ratio on the sharemarket was 1.1 versus 3.3 in the US, where there’s a greater mix of software and internet-based companies that trade on high multiples.

Read the full article here