ENLARGE Currencies play a role in investors’ appetite for Japanese stocks. The fund tracks Japanese stocks but hedges the exchange-rate risk for investors. Buy Japanese stocks as long as the currency was falling, but also make sure that the investment was hedged. Goldman Sachs said in a recent report that foreign investors “continue to be net sellers” of Japanese stocks. That could be considered a contrary indicator, meaning that lower-than-normal exposure to Japanese stocks is actually bullish, as investor money is on the sidelines.

Source: Wall Street Journal December 05, 2016 03:03 UTC