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When will it be safe to get back into Japanese equities?
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Japan,the world's third largest economy is now, technically, in recession. Japan's Q3 GDP fell 1.6% versus a 2.1% rise forecasted. Growth has shrunk in the second consecutive quarter against a background of political uncertainty. Q2 GDP shrunk even more sharply, by 7.3% - which is the deepest drop since the Tsunami in March 2011. Prime Minister Abe is now heading back from the G20 meeting in Brisbane to possibly lead his party into a snap-election within days.
Head of Equity Strategy Peter Garnry gives us his view of Japanese equity markets, which are diving amid rising negative sentiment. He explains why now may not be the time to look for bargains and considers when will it be safe to get back into the Japanese stock markets.