Salient to Investors:

James Hunt at  Tocqueville’s International Value Fund is bullish on Japan despite its poor demographics, huge public debt and weak growth prospects. Hunt says everyone thinks Japan is sinking into obscurity but he sees excellent global franchise businesses at attractive valuations. Hunt says it has been a fool’s game to guess when the yen would finally weaken.

Over the last 12 years aggregate earnings for its profitable companies have increased earnings and return on equity yet the P/E ratio has fallen to 15 and the dividend yield has tripled to 2.3 percent. Japan’s debt-to-GDP at well over 200 percent tops the world.

David Herro at Morningstar says Japan’s risk-reward profile is increasingly attractive. Nicholas Smith at CLSA Japan said Shinzo Abe’s focus is on aggressive monetary and fiscal stimulus.

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