Japanese stocks have been on a strong run this year on hopes that Japan may be exiting its stagflationary environment.
Warren Buffet was positive over Japanese stocks earlier in the year and many US investors have been looking at investing in Japan as an alternative to China. With all the geopolitical tensions around lately that has soured US-China relations Japan could be an alternative to consider.
So, will the Nikkei keep finding buyers as we progress through the year. Here are some key seasonal patterns to be aware of. Between August 10 and October 10 over the last 15 years the Nikkei has only gained just over 50% of the time with an average drop of -3.28%.
So, will this mean that any dips could find buyers ahead of the stronger seasonal pattern to end the year. This is a couple of seasonal patterns to watch carefully….
Major Trade Risks:
Note that previous seasonal patterns do not necessarily repeat themselves each year.
Remember don’t just trade it, Seasonax it!