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Type: Investment strategy report
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Summary

Bank of America Merrill Lynch presents a bullish outlook for Japanese equities in 2017, forecasting the Nikkei 225 index to reach 20,000. The strategy advises a rotation from defensive stocks into cyclicals, banks, and insurance. This is based on an anticipated upturn in the inventory cycle, rising inflation and interest rates, and a strong macroeconomic environment.

People (3)

Organizations (28)

Locations (1)

Location Context

Relationships (2)

Key Quotes (4)

"We are bullish Japan equities for 2017 and we estimate the Nikkei 225 index will recover to 20,000 by end-2017..."
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Quote #1
"We expect rotation into cyclicals, banks and insurance as explained below."
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Quote #2
"We expect cyclicals to outperform defensives, premised on our end-2017 $/ estimate of ¥120, and this is supported by our above-consensus economic growth outlook."
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Quote #3
"Resurgence in the "Japan macro trade" of short yen / buy equities is also a possibility."
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Quote #4

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