Hajime Kitano reclaims the top spot after a year in second place; this marks the third time since 2007 that the 53-year-old strategist has planted the J.P. Morgan flag atop the sector. For the past few years, Japanese stock and yen price movements have been closely correlated, he notes, but there is no causation. “Stock prices do not rise because of a weak yen,” Kitano contends. “Both the yen and stocks are strongly affected by the global business cycle led by the U.S.” Because Japanese bank stocks have a high correlation with U.S. interest rates, he is urging investors to buy them in anticipation of further weakening in the Japanese currency. Many clients say they were stunned to receive an e-mail from Kitano in January announcing that he was leaving the firm. “Kitano-san’s daily memos were mostly very interesting and eye-opening, from an equity investor’s point of view,” asserts one money manager. “The news of his resignation from J.P. Morgan was disappointing.” Other supporters praise the strategist for standing by his recommendations. “Kitano is very consistent and will not waver to short-term market fluctuations,” one fan reports. Adds another: “Kitano-san maintained his view even during difficult circumstances, based on many data points, his experience and logic. Now the market is finally following his view, and I am very sorry that he left the company.” — Thomas W. Johnson |
Economics & Strategy – Equity Strategy: First
