A fund managed by billionaire hedge fund manager George Soros sold off his Japanese shares before the market fell. He's now back. Should you join him?
The Japanese market has fallen 21% in the past two weeks. Just days before the peak, George Soros sold off most of his Japanese stocks. Now he’s back and buying again, according to a report in the Wall Street Journal.
From the beginning of 2013 to May 22, the Nikkei rose 50% in Japanese yen terms. During that same period, the Japanese yen weakened by 16%.
Then, things started to get rough in Japan. Japanese interest rates went up and so did its currency. The Japanese yen is now 5.5% stronger than it was on May 22. Between higher interest rates and a stronger yen (which hurts the country's exporting abilities), the Nikkei dropped over 17% from its May 22 peak. That still means it’s up 21% in Japanese yen terms for 2013.
So, if Soros is now back in the Japanese markets, is it time for you to get in, too?
We posed that question to CNBC contributors Todd Gordon, Fournder of TradingAnalysis.com, and Zachary Karabell, President of River Twice Research.
To hear Gordon and Karabell on whether and how you should invest in Japan, watch the video above.
- George Soros