One of the most memorable lines I heard from my professors back at UC Berkeley was “what I am about to teach you here should work almost anywhere in the world, except Japan”. This was over a decade and a half ago, when many portfolios still needed to define whether they were “ex-Japan” and “ex-China” […]
For the third factor in this series, I wanted to highlight two of the most “classical” factors for classifying and selecting stocks: size (large vs small) and cheapness (growth vs value). These factors were perhaps most famously identified by academics Eugene Fama and Kenneth French, and popularised in the 3×3 grid used by Morningstar to […]
Buyback yield is one of the top factors I look for in stocks of companies I buy. Buyback yield can be thought of one of at least four components of total shareholder return, the others being book value growth, debt reduction / deleveraging yield (familiar to anyone who has paid down principal on a mortgage), […]
Register for our free webinar presented by GFM’s Tariq Dennison and sponsored by Singapore Exchange on strategies for trading SGX-listed Japan futures on Interactive Brokers. The webinar will be held at November 15th, 2017 at 4:30pm Hong Kong time (8:30am GMT / UTC, 3:30am New York time, 12:30am California time). If you can’t make it […]
I find it important to look at exchange traded funds (“ETF”) as a benchmark for what investments in stocks, bonds, or real estate investment trusts (REITs) could be doing as a “fire and forget” trade to track a broad benchmark index with minimal transactional and ongoing costs. The US remains by far the largest, most […]
Japan remains one of my favorite real estate markets due to its large size, maturity, low growth expectations, and relatively high yields vs. low interest rates. As an updated reference, here is a list of 50 of the largest Japanese real estate investment trusts (J-REITs) by market cap as of August 2017: WSJ Name Sector […]
As a small firm managing separately managed accounts, we naturally spend more time ensuring our portfolios are well invested than trying to find visually appealing ways to show how well they’re doing, but this recent >10% outperformance of a relatively small Japan allocation (JPY 5.5 million, or around US$50,000) in one of our accounts looked […]
Here is a chart showing the counterintuitive decade when “low yield beat high yield”, that is, low-yielding Japanese Government Bonds (JGBs) with a starting yield of 1.2% outperformed Australian government bonds with a much higher yield over 5%.