Here's A Classic Example Of Investors All Turning Bullish At Exactly The Wrong Time

Bulls

Here’s a classic anecdote form Nomura’s Hiromichi Tamura, who was just on a swing of European investors discussing Japanese equities.

Whereas in January, when Tamura went out there, there was widespread bearishness towards Japan, this time (right as markets began to falter) everyone was bullish.

Many investors have a bullish outlook for Japanese equities

One of the main takeaways from our latest trip was that more investors were bullish about the outlook for Japanese equities than when we made our last visit to institutional investors in London, Boston and New York back in January this year. Most of the investors we met in January were bearish on the outlook. This time, several investors we met thought our forecast for the Nikkei Average to reach 16,000 by end-2013 was overly conservative. In the past, investors with the longest experience of investing in Japanese equities had been the most cautious on the outlook, but we now get the impression that nonresident institutional investors welcome the speed of government policy implementation under Abenomics.

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