As Japanese stocks plummet, confirming a bear market, there are opportunities in small-cap and domestic-focused companies, according to fund manager Richard Kaye.
'Yen is just getting normal' Kaye believes the Yen's appreciation is a return to normalcy rather than an anomaly.
"If you look even on Friday in all the bloodbath, domestic names, small cap names [were] actually outperforming," he noted.
Indeed, the MSCI Japan Small Cap index has fallen 8.6% since July 11, outperforming the 14.4% decline in the MSCI Japan index on a local currency basis.
In U.S. dollar terms, the losses, while proportionate, are smaller, with ETFs such as the iShares MSCI Japan Small-Cap ETF falling by 2.1% compared to the iShares MSCI Japan ETF, which is down 8.9% over the same period.
Persons:
Richard Kaye, Kaye, Yen, CNBC's, They've, Warren, sayonara, I've
Organizations:
Growth, Toyota, Sony, U.S ., Japan ETF, Kobe, U.S, Mitsubishi, Mitsui, Sumitomo
Locations:
Comgest, Japan
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