Salient to Investors:
Mark Matthews at Bank Julius Baer said the bull market will resume because of compelling fundamentals.
Eisuke Sakakibara said Japanese equities had risen too much, too fast, especially financial stocks, and needed a correction before resuming their climb.
J. Kyle Bass at Hayman Advisors said selling from JGB investors has overwhelmed the BOJ’s ability to purchase them, and has predicted a financial collapse in Japan since 2010 Bass said the BOJ must dramatically expand its JGB purchasing operation if it is going to successfully hold back rates.
Curtis Freeze at Prospect Asset Mgmt expects a few weeks of a shakeout as people sell to meet margin calls, and a bottom in August – we are back to reality in share prices.
Grace Tam at JPMorgan Asset Mgmt says it is a short-term overdue correction.
Tatsushi Maeno at PineBridge Investment Japan says this correction is a great buying opportunity.’
The value of shares purchased in margin accounts are at the highest since 2008.
Investors are the most confident in a Japanese leader since at least September 2010.
The Topix traded for as much as 24.8 times earnings this week, higher than 86 percent of days since 2004. Topix earnings are forecast to rise 33 percent in 2013. 60 percent of companies so far reporting full-year earnings since April 1 have beaten estimates. S&P 500 earnings are projected to grow 10 percent in 2013.
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