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Japan
Posted: May 17th, 2023, 8:23 pm
by GoSeigen
I've started building a currency-hedged long Japanese equity position using spreadbets but was wondering if anyone can recommend an ETF that does the same thing. Preferably a Nikkei index tracker denominated in GBP and fairly liquid. This is to take a view on Japan facing an inflation problem, hence the requirement to hedge.
Thanks.
GS
Re: Japan
Posted: May 18th, 2023, 10:13 am
by mc2fool
Not a recommendation per se, but on a look on the iShares site, IJPH -
iShares MSCI Japan GBP Hedged UCITS ETF (Acc) maybe?
Re: Japan
Posted: June 1st, 2023, 7:05 pm
by 1nvest
GoSeigen wrote:I've started building a currency-hedged long Japanese equity position using spreadbets but was wondering if anyone can recommend an ETF that does the same thing. Preferably a Nikkei index tracker denominated in GBP and fairly liquid. This is to take a view on Japan facing an inflation problem, hence the requirement to hedge.
Thanks.
GS
Japan restricts migration, has a shrinking and ageing population such that inflation pressures are relatively lower. The State also controls/limits price rises, that for instance stabalise energy costs i.e. companies/businesses tend to agree to long term fixed rate contracts, so much less of the issues that UK companies have had to endure through such hikes. It imports wheat through a government organisation, that fixes prices for six months at a time, which helps to dilute food price inflation. Unions are also more focused upon job security/benefits than that of higher wages. It's central bank also pretty much buys up all of the debt the Treasury issue, and a domestic held debt isn't really a issue, its just a internal money (re)distribution matter.
Just saying. I would have thought that if anything the Yen could relatively strengthen. Strengthened from around 360 Yen per USD in the 1970's to 240 in the 1980's, 120 in the 1990's but has remained at around that level since. In contrast their good governance has the mirror reflection in the UK (bad governance), such that the Pound relative to USD moved in the complete opposite direction. I don't see any turn-around in that, UK governance if anything looks set to become even worse (SKS as PM = even less stability than the shaky/rapidly often-changed practices/policies we already see in the UK).
Re: Japan
Posted: June 3rd, 2023, 3:21 am
by hokkaidobear
The only issue that could impact Japan in a large way is Taiwan
Re: Japan
Posted: June 3rd, 2023, 11:22 am
by GoSeigen
hokkaidobear wrote:The only issue that could impact Japan in a large way is Taiwan
Tell us more...
GS
Re: Japan
Posted: June 3rd, 2023, 9:15 pm
by NotSure
GoSeigen wrote:I've started building a currency-hedged long Japanese equity position using spreadbets but was wondering if anyone can recommend an ETF that does the same thing. Preferably a Nikkei index tracker denominated in GBP and fairly liquid. This is to take a view on Japan facing an inflation problem, hence the requirement to hedge.
Thanks.
GS
Out of interest, is this strategy a purely hedged bet on the Nikkei, or at least in part a short of the yen? I am intrigued you think Japan will face an inflation problem. They have been trying to achieve this for decades with almost zero effect. By Japanese standards, inflation has kicked off a bit of late, but outside of UK, inflation seems to headed back down?
Re: Japan
Posted: June 5th, 2023, 8:08 am
by GoSeigen
NotSure wrote:GoSeigen wrote:I've started building a currency-hedged long Japanese equity position using spreadbets but was wondering if anyone can recommend an ETF that does the same thing. Preferably a Nikkei index tracker denominated in GBP and fairly liquid. This is to take a view on Japan facing an inflation problem, hence the requirement to hedge.
Thanks.
GS
Out of interest, is this strategy a purely hedged bet on the Nikkei, or at least in part a short of the yen? I am intrigued you think Japan will face an inflation problem. They have been trying to achieve this for decades with almost zero effect. By Japanese standards, inflation has kicked off a bit of late, but outside of UK, inflation seems to headed back down?
If you want a feel for my thinking and what's going on in my mind it's
here. Enjoy!
GS
Re: Japan
Posted: June 11th, 2023, 4:28 pm
by spasmodicus
GoSeigen wrote:If you want a feel for my thinking and what's going on in my mind it's
here. Enjoy!
GS
Ho ho GS, not being a private equity fund manager, I wouldn't know why one of those (male, female or LGBTQ) would find a woman with three arms unattractive. She would seem to me to have certain possibilities. Be that as it may, we still don't actually know whether the inverted yield curve is indicative of anything at all. Having not owned any treasuries or gilts for some time I was beginning to think it might be worth parking the spare cash in some T24s so that I would at least get 5% or so on it over the next year or so, irrespective of which way inflation goes in the UK. There's not really a lot else one can do, unless one of you out there has some bright ideas.
S
Re: Japan
Posted: June 25th, 2023, 7:53 am
by WindhoverDave
Not understanding the jargon - what's a T24?
Re: Japan
Posted: June 25th, 2023, 9:24 am
by Dicky99
WindhoverDave wrote:Not understanding the jargon - what's a T24?
https://www.londonstockexchange.com/sto ... mpany-page