LPL Research – Weekly Market Commentary – May 19th 2014

///LPL Research – Weekly Market Commentary – May 19th 2014

LPL Research – Weekly Market Commentary – May 19th 2014

2017-11-20T15:21:01+00:00 May 20th, 2014|Weekly Market Commentary|

Japan Going Godzilla

Weekly Market Commentary 5-19-14

Godzilla, the latest version of Japan’s King of Monsters, took the top spot at the box office this past weekend. But Japan’s stock market looks like a giant mutated lizard stomped all over it. One of the worst-performing stock markets in the world this year, Japan’s Nikkei Stock Average is down 13% in yen and 10% measured in dollars. The drop has been enough to push down the forward price-to-earnings ratio for companies in the MSCI Japan index to a rare discount to the U.S. S&P 500 Index.

Yet Japan’s economy is finally growing. First quarter 2014 economic growth in Japan was a strong 5.9% above the prior quarter and 3.0% above the year-ago quarter, according to data released last week. It marked the fifth straight quarter of growth — a streak not exceeded since before the 2008 – 09 global recession. The quarter’s growth was boosted by spending ahead of a consumption tax increase, which could be largely reversed in the second quarter.

Click here to read the full commentary from LPL Financial Chief Market Strategist, Jeffrey Kleintop.

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