Trailing Stops Made Simple…

by Alexander Green, Chief Investment Strategist
Monday, November 16, 2009: Issue #1138

Everyone likes to talk about stock market winners. No one likes to talk about losers. Perhaps especially those of us who pick stocks for a living. But buy enough stocks and you’re bound to have some losers. And that’s okay.

Intelligent investing is about managing risk, not running from it. Avoid volatility altogether with money markets and T-bills and you risk not meeting your investment goals. Turn a blind eye to volatility, on the other hand, and your portfolio will give you a kick in the pants.

The solution is two-fold:

1. Understand that taking risks inevitably means some investments won’t pan out. Recognize this and you’re far less likely to run to cash, or throw in the towel on a practical, long-term strategy.
2. Cut your losses and let your profits run.

You do this by running a trailing-stop behind each individual stock position, let me explain…

Where to Place Your Trailing Stops

How far behind should you place the trailing stop?

• For longer-term investors, 25% is about right.
• For short-term traders, 15% is closer to ideal.

Why the difference? Running trailing stops is an art, not a science. Your goal is to run the trailing stop as close as you can without getting knocked out by a stock’s day-to-day, or week-to-week volatility.

Short-term traders are looking to nip a lot of smaller gains. Longer-term investors – partly to avoid short-term capital gains taxes – prefer to place a trailing stop where they’re likely to hold their stocks longer and perhaps score even bigger gains down the road.

The system is straightforward…

Trailing-Stops Made Simple

Let’s say you get filled at $20 a share. If you’re using a 25% trailing-stop, place a sell-stop at $15. If the stock moves up to $30, your sell-stop should be moved to $22.50. And so on. This protects your profits.

And please don’t tell me you don’t have time to adjust your stops. If you can’t watch your portfolio, you really shouldn’t be trading individual stocks.

If you’re busy, however, one solution is Tradestops.com. The service sends you a text message – to your cell phone or e-mail account – alerting you any time one of your stocks closes below your selected stop. (Visit www.Tradestops.com for details.)

But trailing stops don’t just protect your profits. They also protect your principal. This is equally important.

Protect Your Principal With A Trailing Stop Discipline

You never want to let a small loss turn into an acceptable loss.

For example, if you take a 20% loss on a stock, you only need a 25% gain to be made whole again. However, if you let a stock drop 50% before selling it, you need to earn a 100% gain to restore your capital.

And if you’re even less disciplined in cutting your losses and you let a stock fall 75% before selling it, you need a 300% return on the proceeds to get back to your starting point. That’s not easy.

In short, don’t fall in love with your stocks. They won’t love you back. Our motto is this: Marry your sweetheart, not your stocks.

Using a trailing stop provides a discipline. It may sound cliché when I tell you that you need to cut your losses and let your profits run. But there’s a reason for it.

It’s true.

Good investing,

Alexander Green

Editor’s Note: In the end, much of what it takes to become a successful investor comes down to knowing the best times to buy and sell. Some investors rely on technical analysis; others pinpoint fundamentals. But regardless of the methods you use, it’s pointless if you don’t adequately protect yourself from a volatile, unforgiving market. Using trailing stops and position sizing are core investment practices at The Oxford Club, but if you want to take all the guesswork out of the process and let some of the best, most successful analysts do the work for you, then consider becoming a member. Just check out the many benefits you’ll get – and all for just $79 a year.

how to use trailing stops, trailing stop strategies, trailing stops

Oil and Natural Gas Investments: Why You Should Buy Black Gold Now

by Alexander Green, Chief Investment Strategist
Thursday, December 3, 2009: Issue #1150

Some day in the future, human beings will likely colonize Mars. But if I suggested you invest in its colonization now, you’d rightly think I was a few cards short of a full deck.

The same is true of much-ballyhooed “alternative energy.”

Someday, nano-engineered solar panels and wind turbines may power the nation and the rest of the world. But it won’t be anytime soon. Today, wind and solar combined make up just one-sixth of 1% of American energy consumption.

As for the Cassandras who insist we simply don’t have any choice but to look elsewhere and that our planet is running out of oil and natural gas… well, take it with a whole shaker full of salt.

Here’s why – and how we can play the current oil and natural gas investment situation…

How to “Run Out of Oil” Multiple Times

Consider this from Pulitzer Prize-winning columnist, George Will:

“In 1914, the Bureau of Mines said U.S. oil reserves would be exhausted by 1924. In 1939, the Interior Department said the world had 13 years worth of petroleum reserves.

In 1970, the world’s proven oil reserves were an estimated 612 billion barrels. By 2006, more than 767 billion barrels had been pumped and proven reserves were 1.2 trillion barrels. In 1977, Scold-in-Chief Jimmy Carter predicted that mankind ‘could use up all the proven reserves of oil in the entire world by the end of the next decade.’ Since then, the world has consumed three times more oil than was then in the world’s proven reserves.”

The world’s population is rapidly rising, of course. And so is discretionary income. Nearly 2 billion of the world’s 6.2 billion population don’t have electricity and have never flipped a light switch.

So surely that means nuclear power is likely to play a major role in meeting future energy demand?

Nope.

Forget Nuclear… Oil and Natural Gas Will Still Rule the Energy World

By 2050, there will be more than 10 billion energy consumers. If nuclear power is to supply even 10% of our carbon-free energy, the world would have to build more than 50 large nuclear power plants a year. Currently, five a year are being built.

Our primary energy source for the rest of our lifetimes will be the same one that has dominated for the past 150 years: oil and gas.

Despite all the naysayers and finger-waggers, that’s not an insurmountable problem. The world’s deep-water oil and natural gas reserves are significantly larger than was thought just a decade ago. And higher oil prices have spurred the development of technologies for extracting them.

That means the cost of developing Canada’s oil sands, for example, are quickly declining. Projects that weren’t viable last year now are, with oil at $77 a barrel.

As for natural gas, U.S. known reserves – including the Marcellus Shale, – which contains more natural gas than the North Field in Qatar, the largest field ever discovered – exceed 100 years of supply at the current rate of consumption. And those reserves are sure to become larger.

Two Huge Commodities… And One Investment That Capitalizes on Both

Let other speculators chase the high-risk venture capital investments in alternative energy sources. Oil and gas are here to stay. Bank on it.

Or better yet, pick up a few shares of iShares Dow Jones US Oil & Gas Exploration Index (NYSE: IEO). Here are three reasons why you should…

• It’s well-diversified, holding Anadarko Petroleum (NYSE: APC), Apache (NYSE: APA), Chesapeake Energy (NYSE: CHK), Devon Energy (NYSE: DVN), Noble (NYSE: NE), Occidental Petroleum (NYSE: OXY), Valero (NYSE: VLO) and many others.
• It’s liquid.
• Costs are low – annual expenses are less than half of one percent.

Good investing,

Alexander Green

Alexander Green, natural gas investments, NYSE: IEO, oil investments

Why the Dollar Will Soar in 2010

by Alexander Green, Chief Investment Strategist
Monday, December 14, 2009: Issue #1157

We all know why the dollar is in the cellar right now. We also know why it’s expected to continue right through to the basement floor:

• Massive budget and trade deficits.
• Ultra-low interest rates. (Zero on the short end.)
• $59 trillion in unfunded liabilities for Social Security, Medicare and Medicaid.
• Bernanke conjuring extra trillions out of thin air to buy Treasuries and mortgage-back securities and patch various holes in the U.S. economy.

There is no reason to believe any of these problems will vanish in the months ahead. Yet the dollar will soar in 2010. Here’s why…

Two Reasons for a Dollar Rebound

There are two main forces that could drive the dollar higher:

• All the problems mentioned above are already well recognized and priced into the greenback.

• Dollar psychology is overwhelmingly bearish. Just as 10 years ago, investors couldn’t imagine Internet stocks doing anything but soaring higher. Five years ago, they couldn’t imagine real estate doing anything but barreling down the same one-way street. Record lows for the dollar are coinciding with enormous confidence that the dollar has nowhere to go but down.

When extreme valuations are accompanied by unbridled optimism or abject pessimism, it virtually always marks a turning point – and an opportunity. This is no exception.

Commentators seem to forget that all currency values are contingent. You can’t just look at fundamentals in the United States. You have to look at them abroad, too.

And there isn’t much out there right now that’s terribly positive…

America’s Fellow Heavyweights Have Problems, Too

Take Europe, for example…

• Eurozone: In the third quarter, the 16-nation Eurozone grew at a 1.5% annual rate. The U.S economy, by comparison, grew at 3.5%. European consumers and most business sectors are still feeling the pain from the deepest recession since the 1930s. The continent is likely to be the weakest region for global expansion next year, according to Julian Callow, Chief European Economist at Barclays Capital in London.
• United Kingdom: This is no bastion of strength, either. Europe’s biggest economy outside the Eurozone is still in recession, due to overly indebted British households and tight credit. British GDP contracted at an annualized 1.6% in the third quarter.
• Japan: The world’s second-largest economy has its own problems, too. At 172% of GDP, Japan’s government debt is by far the largest among rich nations. What’s more, it’s expected to reach 200% next year – and hit 300% within a decade. Rising social security costs and the weak economy are the primary culprits.

The new government there is trying to prevent a double-dip recession by spending even more. But with government debt soaring to records, talk of new stimulus measures is already pushing up long-term rates and threatening to curtail the impact of fresh spending.

Bet on the Dollar in 2010

Recognize that Europe and Japan are hardly experiencing heady economic growth and great fiscal probity. Most are bogged down economically and running fiscal deficits as bad as ours.

And personally, when the whole world is in this big a mess, I’ll take the greenback over the euro, the pound, or the yen. My bet is in 2010, so will most world currency investors.

Virtually no one is expecting it, but the dollar is likely to climb 20% against the euro and the pound next year and 15% against the yen.

Hedging is fine, of course. But if you have too much exposure to foreign-currency denominated bonds, CDs, or bank accounts, rein it in.

Good investing,

Alexander Green

Editor’s Note: Have you ever looked at an index, stock, or currency make a huge move in one direction and wondered how you can take advantage of the momentum without getting burned? Many investors blindly follow the herd, unaware of the best times to buy and sell, while others watch the moves with envy, wishing they’d capitalized on them.

Investing on momentum is a very powerful concept – and one that’s easy to follow, as it encompasses just a few simple steps. Alexander Green is a master at finding explosive “momentum stocks” and shows investors exactly how to profit in his Momentum Trader service. For more details, check out this report.

dollar rebound in 2010, the U.S. dollar, weak dollar

Your Best Investment Strategy for 2010… And Beyond

by Alexander Green, Chief Investment Strategist
Monday, January 4, 2010: Issue #1167

At 11:38 AM on January 28, 1986, the space shuttle Challenger lifted off its launch pad at Cape Canaveral in Florida.

Seventy-four seconds later – and 10 miles higher – it blew up.

The launch was televised live, so the news spread quickly.

The stock market didn’t stop to mourn… Within minutes, investors began bailing out of the four major shuttle contractors:

• Rockwell International, which built the shuttle and its main engines.
• Lockheed Martin, which managed ground support.
• Martin Marietta, which manufactured the ship’s external fuel tank.
• Morton Thiokol, which built the solid-fuel booster rock.

All four stocks were hit hard initially. But by the end of the day, three of them were down just slightly. Only Morton Thiokol closed sharply lower.

While there were no public comments that day singling out Thiokol as the guilty party – and it would be six more months before a Presidential Commission revealed that the company’s O-ring seals were the culprit – the stock market almost immediately labeled Thiokol as the company responsible for the disaster.

So how did the market know something that even NASA scientists didn’t? Author James Surowiecki calls it “the wisdom of crowds.” And there’s evidence of it all around us…

Follow the Experts or Follow the Masses?

Take the economy, for example. No individual is smart enough to know where to put the dry cleaners, tire stores, banks, or coffee shops in your community. But rational, self-interested people – as if directed by Adam Smith’s famous “invisible hand” – will provide what we need, where we need it and when we need it.

That’s why free markets work and command economies don’t.

Or consider the TV show “Who Wants to Be a Millionaire?” When a contestant got stuck on a question and was allowed to ask an expert of his choice, the expert gave the right answer 65% of the time. But when the contestant polled the audience – a random group of people with nothing better to do on a weekday afternoon than sit in a TV studio – they picked the right answer 91% of the time.

My point? We prize and honor individual intelligence. Yet counter-intuitive as it seems, crowds are usually smarter than the experts.

Unfortunately, they’re also more emotional. And that often leads to disaster. Especially when it comes to investing…

The Madness of Crowds

Over the last decade, look at where the mob has taken Internet stocks, residential real estate and the entire stock market (on both the high and low sides).

As Charles Mackay wrote in Extraordinary Popular Delusions and the Madness of Crowds:

“Men, it has been well said, think in herds. It will be seen that they also go mad in herds, while they only recover their senses slowly and one by one.”

This investment classic was published in 1841 – and those words are still true 169 years later. So when the herd begins to stampede, there is only one intelligent thing to do: Get the heck out of the way.

It’s called contrarian investing – and we’ve used it to capitalize on, and avoid, a number of dramatic developments in recent years. That includes dodging the overheated real estate market… selling $150-a-barrel oil… and buying great companies at a 13-year low last March.

However, you can’t bet against the crowd every day and expect to win. That’s simply blind contrarianism and it doesn’t work.

Remember, you aren’t right simply because you agree or disagree with the crowd, but only when your facts and reasoning are right.

Against Conventional “Wisdom,” Expect This Currency to Rally in 2010

Nevertheless, history shows that investment opportunities are greatest when extreme valuations are combined with extreme sentiment. When euphoria greets high valuations and there’s abject pessimism over low valuations.

This doesn’t occur every day, of course. Under ordinary circumstances, most assets are neither an immediate sell nor a table-pounding buy.

Yet three weeks ago, I made the case that based on fundamentals and sentiment, the U.S. dollar is oversold and is likely to soar in 2010. The greenback hasn’t waited for the New Year, however. It put on an impressive rally in December.

Are we at the inflection point when the greenback makes a sustained move up against the world’s major foreign currencies? I think so.

The structural imbalances in U.S. trade and fiscal policy are already reflected in the price of the dollar. Major European economies and Japan are hurting more than we are. And over the second half of the year, Ben Bernanke is likely to start mopping up the excess liquidity he created by raising short-term interest rates. That will only add fuel to the dollar’s rally.

In short, expect a sea change in the way “the crowd” views the dollar this year. And adjust your portfolio accordingly.

Good investing,

Alexander Green

Editor’s Note: For much more on how to organize your investment portfolio this year – and put yourself in the best position to make money in what should be another challenging year for investors – Alexander Green wants to extend a personal invitation to you.

It’s a chance to join one of the most exclusive investment clubs around – one that he oversees personally and includes some of the most successful investors who know that it’s possible to make money in any market climate.

The Club strives to give its members the best possible wealth-building ideas and investment recommendations – and its performance has resulted in the independent Hulbert Financial Digest ranking its investment newsletter in the top five in the United States over the past decade.

So kick off 2010 on a great note and see how you can become a member, too.

best investment strategy, Charles Mackay, contrarian investing

How to Play Rising Foreign Stocks and a Rising Dollar

by Alexander Green, Chief Investment Strategist
Monday, January 18, 2010: Issue #1177

I’ve made no secret here recently that I believe the dollar is likely to soar against the euro, the pound and the yen this year. Yet this remains a distinct minority opinion.

Most analysts are focused on the huge U.S. budget and trade deficits, nearly $60 trillion in unfunded liabilities for Social Security, Medicare, Medicaid and the new prescription drug benefit, and the Federal Reserve’s penchant for conjuring trillions of dollars out of thin air to “fix” the economy.

These are indeed real and intractable problems that weigh on the dollar.

But people forget that currencies are measured in other currencies. And most of the world’s major economies have it worse than we do…

Why the Dollar Should Surge in 2010

Here’s a why the dollar will soar in 2010. Consider that…

• Japan and Western Europe are both growing more slowly than the United States.
• Both are also more socialistic – with bigger imbalances down the road.
• Many foreign nations are in worse fiscal shape than the United States. Our budget deficit as a percentage of GDP, for example, is only one-third as big as Japan’s.

In addition, the United States is likely to outperform these other economies in 2010 and the Fed is likely to start raising short-term rates toward the end of the year. That’s a catalyst for a surge in the dollar.

Despite the fundamentals, though, sentiment still weighs heavily against the dollar. In fact, there’s almost an air of disbelief when you talk to knowledgeable investors about the potential for a rising dollar. (These are the same smart guys, incidentally, who thought Internet stocks were a “new paradigm” and residential real estate values were a one-way street.)

And it’s this sentiment – as much as the fundamentals – that makes the case that the dollar should be a wonderful contrarian investment in 2010.

That means foreign currency-denominated bonds and bank accounts should be held for hedging purposes only, in my view.

However, I’ve also received letters from subscribers asking if they should bail out of their international stocks, too.

Absolutely not. Here’s why…

Head to Emerging Markets and Capitalize on a Falling Dollar

Foreign stocks can appreciate strongly enough to overcome a falling foreign currency. (Most emerging market stocks are denominated in undervalued currencies or ones that are pegged to the dollar.) And some foreign companies, especially exporters, actually benefit from a falling local currency.

However, make no mistake: If the greenback rises it will diminish total returns on international assets for those investors keeping score in dollars.

The exception will be those investors who hedge their foreign currency exposure with futures and options. For most investors, this alternative is too cumbersome and expensive. (After all, you have to hedge every currency you own for each foreign stock for each holding period.)

An International ETF That Offers Foreign Diversification Without Currency Risk

That’s why I’m happy to report that WisdomTree has recently introduced an international exchange-traded fund (ETF) that allows you to own foreign stocks with the foreign currency exposure totally hedged…

It’s called the WisdomTree International Hedged Equity Fund (Nasdaq: HEDJ).

The fund invests in a trio of ETFs:

• WisdomTree Europe Total Dividend Fund (NYSE: DEB)
• WisdomTree Japan Total Dividend Fund (NYSE: DXJ)
• WisdomTree Pacific ex-Japan Dividend Fund (NYSE: DNH)

Of the roughly 250 international-stock ETFs on the market, this is the only one without foreign-currency exposure. And the total expense ratio for HEDJ is a reasonable 0.58%.

So if you want the diversification power of non-U.S. stock holdings – which you should – without the foreign currency risk, HEDJ is your natural choice.

And if the dollar rises, as I expect this year, this fund should end 2010 near the top of the heap for international fund performance.

Good investing,

Alexander Green

Editor’s Note: Who would you rather take investment advice from? Giddy television hosts, who scream at you to “Buy/sell immediately… or rue it later?” Or a man whose multi-year Wall Street track record speaks for itself and who quietly racked up 14 double-digit winners in 2009 – for overall gains of 3,349%?

As Alex Green says, “Watching CNBC will make you dumber and poorer.” Sadly, many investors believe the hype and blindly follow each other into losing investments. The trick is to act on facts, not the emotions of the crowd – which is why his call for a U.S. dollar rally is so contrarian at the moment. Few people agree right now, but when the masses catch on, you could ride the wave higher.

Spotting real trends and positioning investors early enough to take advantage before the crowd piles in is the key behind Alex’s Momentum Alert service – and the strategy responsible for those outstanding gains in 2009. To find out how you can take advantage, too, take a few minutes to read this report about the Momentum Alert.

Emerging Markets, investing in foreign stocks, Nasdaq: HEDJ, rising dollar

Income Investors… Here’s The Biggest Mistake You Can Make

by Alexander Green, Chief Investment Strategist
Monday, February 1, 2010: Issue #1187

According to Crane Data of Westborough, Massachusetts, the 100 biggest money market funds are currently paying an average of .05 percent.

This is the smallest return that money markets have ever paid. To put it in perspective, at the present rate, it would take more than a 1,000 years to double your money.

I’ll go out on a limb here and suggest that may be a tad longer than your personal investment horizon.

Here’s what not to do in response to this…

Chasing Higher Returns… In the Wrong Place

Investors who panicked during the market meltdown a year ago and have hidden in cash investments for 12 months are really suffering. Not only did they get stung in the market’s selloff, they’ve earned next to nothing in cash and have missed an enormous rally in corporate bonds and stocks.

If you go back in history and look not just in the United States, but also in global fixed-income markets, the gap between long and short-term rates has rarely been greater. Translated into the parlance of the bond market, the “yield curve” has seldom been steeper.

So in order to escape today’s microscopic yields, mutual fund money-flow reports show that many income investors are shoveling money out of their money market funds and into long-term U.S. government bonds – and the funds that invest in them – because they’re higher yielding and “safe.”

Uh-oh…

When Interest Rates Rise, Bond Investors Will Pay the Price

What many of these investors don’t understand is how badly they can – and almost certainly will – get whacked when interest rates start to rise.

The Federal Reserve and other central banks around the world have maintained an extremely loose monetary policy in order to restore the health of the global financial system. And while we’re still only in the fourth or fifth inning, things are definitely looking up.

(Those who want to debate this point can argue with the world’s financial markets, not me.)

Eventually, Federal Reserve Chairman Ben Bernanke (who just got reappointed to a second four-term in office) will start taking short-term rates higher. That will probably happen in the second half of this year. Longer-term rates will rise, too. In fact, they’ve been on an upward trajectory since late November.

Yield-hungry investors – the same ones who over-invested in stocks two years ago when they thought the coast was clear – are now plowing into Treasuries at precisely the wrong time.

How can we be sure?

• Because when bond yields rise, prices fall. The effect is magnified for longer-term securities, so a 30-year bond will fall in value much more sharply than, say, a six-month Treasury bill.
• Of course, a money market fund will benefit as interest rates rise. But even if the Fed lifts rates by 100 basis points – a full percentage point in layman’s terms – the yield on a money market will still be only 1%.

It’s tough to imagine reaching your investment goals at that rate. However, investors in Treasuries face an even bigger problem…

America Is About to Lose Its Triple-A Membership

Because of long-term structural deficits in the United States, Treasuries may soon see a ratings downgrade.

Everyday investors will see this as a stunning bolt out of the blue. But they shouldn’t. The writing has been on the wall for a long time.

Congress has spent the past three decades spending money like sailors with four hours of shore leave. Eventually, the piper must be paid. And it will come in the form of our sovereign debt losing its vaunted Triple-A credit rating.

Want someone to blame? Contact your Congressman and your two Senators. Tell them you know what they’ve been up to lately: http://www.usdebtclock.org/

In short, there are plenty of great places to invest for yield right now. I can assure you that long-term Treasuries are not one of them. On the other hand, the Oxford Club’s Perpetual Income Portfolio and Ultimate Retirement Portfolio are full of good ideas – and you can get more details about them here.

Good investing,

Alexander Green

income investing, Money Market Funds, U.S. Treasuries

Investing in Japan: Two Ways to Play Its Stock Market Revival

by Alexander Green, Chief Investment Strategist
Monday, February 8, 2010: Issue #1192

Here’s a handy way to know when to sell your investments: everyone is talking about them.

There is an obvious corollary to knowing what to sell. If you want to know what to buy, consider what no one is talking about.

And that brings me to investing in Japan…

Investing in Japan: Land of the Rising Sun And Stock Market

From a high near 40,000 in 1989, the once-mighty Nikkei 225 – the equivalent of our S&P 500 – fell over 80% and hit a 27-year low early last year. It’s still more than 70% below the highs of 21 years ago.

The main culprit – aside from a real estate bubble that made the one here in the United States look bush-league – was misguided government policies. Japan waited too long to clean up its ailing banking system and spent trillions on public works projects that simply weren’t needed.

However, Japan has a new government that has promised to shrink the country’s massive bureaucracy and cut wasteful public spending. It also intends to end more than 20 years of economic stagnation by cutting taxes and focusing on small and mid-sized businesses.

Japanese stocks have rallied off the lows of 10 months ago. In fact, the Tokyo Exchange is one of the world’s best-performing bourses so far in 2010.

But it’s still among the cheapest and most unloved in the world. Virtually no one is enthusiastic about Japanese stocks.

And that’s excellent news…

Two Ways to Invest in Japan’s Economic Revival

Great opportunities are born when dirt-cheap valuations are married to investor disgust or apathy. And there are a number of good reasons to put money to work in Japan right now…

• A New Political and Economic Philosophy: Just as Ronald Reagan’s free-market policies ignited one of the great bull markets of the twentieth century, Japan stands at the threshold of a new era.
• Consumer Cash: Japanese consumers and investors are flush with cash. Having largely ignored domestic stocks after years of sub-par returns, the Tokyo market should lift off as that money begins to find its way out of mattresses and back into Japanese equities.
• Institutional Involvement: For years, global fund managers have outperformed the world benchmark simply by underweighting Japan. But if the bullet train takes off without them, they will be forced to dash after it.

If you want to invest in Japanese companies directly, there are plenty of Japanese ADRs (American Depository Receipts) available on the New York Stock Exchange.

But if you’re looking for a quick way to gain access to this market, consider these two ETFs…

• iShares MSCI Japan Index (NYSE: EWJ) for large-cap stocks.
• WisdomTree Japan SmallCap Dividend Fund (NYSE: DFJ) for smaller companies.

Both offer exceptional upside potential in the months ahead. And then, of course, investors will start talking about them.

Good investing,

Alexander Green

investing in japan, japans economic recovery