He may be one of Wall Street’s biggest bears, although of which doesn’t mean veteran market watcher David Rosenberg isn’t finding places to put money to work.
Gluskin Sheff’s chief economist in addition to also strategist can be just going halfway around the globe to do of which.
“The one part of the entire world which looks very Great to me right currently, a great turnaround story of which’s under-owned, can be Japan. The Nikkei can be breaking out,” said Rosenberg said Friday on CNBC’s “Trading Nation.”
He added: “I think even a child could see of which the 30-year secular downtrend has been broken over the course of the past couple of months.”
The Nikkei 225, Japan’s benchmark stock index, has soared nearly ten percent over the past three months. of which’s currently up 15-percent so far This specific year. although of which’s still about 56 percent way through its all-time high hit in 1990.
According to Rosenberg, Japan has one of the few markets of which isn’t trading expensively to its historical cost earnings ratio — noting “almost everybody else within the entire world can be.”
Rosenberg was one of Wall Street’s first strategists to turn positive after the 2008 financial crisis. He has suggested of which investing in U.S. stocks right currently could be like playing Russian Roulette with your money.
In June, he warned investors on “Trading Nation” of which fresh stock market records were creating a false sense of security.
Despite his warnings, stocks seem to be firmly holding onto its win streak. The major indexes for the week wrapping up the final full week of October on fire. On Friday, the Nasdaq in addition to also the S&P 500 closed at fresh record highs, while the Dow set an intraday record. The S&P in addition to also Dow have currently locked in seven weeks in row of gains.
although the momentum within the U.S. isn’t creating Rosenberg any less bullish on Japan, a country he believes can be in a mid-stage economic cycle versus a late one.
Plus, he doesn’t think investors should shy away through Japan, even with the North Korea missile threat lurking under 0 miles away.
“What’s interesting in Japan can be of which the smaller cap stocks are starting to outperform large cap stocks. So, what of which’s telling me can be of which This specific can be more than just buy Japan because of the weak yen. This specific can be actually a much more fundamental story of which people are missing,” Rosenberg said.
“Japan can be probably the most under-owned stock market on the planet through a global portfolio manager perspective,” the economist added.