Japan's Companies Need to Buy Back Shares, CLSA's Smith Says

The video discusses the current state of Japanese stocks, highlighting their relative affordability compared to other global markets, particularly the US. It examines the financial performance of Japanese companies, noting improvements in return on equity and the need for share buybacks. The discussion also touches on the political and economic challenges Japan faces in implementing structural reforms, with a focus on the difficulties of enacting changes in a democratic system.

What is the current discount on Japanese stocks compared to the US market?

• 10%

• 25%

• 50%

• 75%

How does the return on equity in Japan compare to Europe over the last five years?

• No data available

• Same as Europe

• Lower than Europe

• Higher than Europe

What financial strategy is suggested for Japanese companies to improve their market position?

• Increase cash reserves

• Buy back shares

• Reduce workforce

• Expand into new markets

What has been the increase in equity in the US over the last dozen years?

• 50%

• 80%

• 60%

• 72%

What is a major obstacle to implementing economic reforms in Japan?

• Technological limitations

• Public opposition

• International pressure

• Lack of financial resources