Japanese fundamentals look positive but there’s a lack of capital flowing into the equity markets, warns Brett McGonegal, CEO of Capital Link International.
“The shape of the Japanese corporates is actually very positive, very strong right now,” he said while speaking on CNBC’s Street Signs. “But you need capital flows into the market in order to get this equity rally.”
McGonegal believes other investment possibilities such as the US or China are diverting attention from investors. “Unfortunately, Japan could miss out on some of that momentum flow that they need to move the Nikkei to the next level,” McGonegal said.
McGonegal is a principal investor in Asia Times.