Global Markets

Global Markets Update

13 June, 2018

Are investors right to dismiss surging Japanese profits?

Surging corporate profits in Japan since the beginning of last year have not generated much excitement among investors. This is probably because most of it has come from sectors that rely heavily on global growth, and it is therefore not seen as sustainable. Our forecast for a global slowdown next year suggests profit growth in these sectors will fall, and that Japanese equities will continue to struggle.

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