🇪🇸 **Goldman Sachs: Are Japanese Stocks at Risk of Falling as the Yen Surges?**

Goldman Sachs flags echoes of 2024, when a sudden yen surge triggered a **24%** peak-to-trough drop in Japan's TOPIX.
• Foreign investors' positions in Japanese equities are now **20%** above pre-correction 2024 levels, and hedge fund allocations sit in the 98th–99th percentile over five years — leaving positioning vulnerable to a rapid de-risking.
• Still, GS raised its 12-month TOPIX target to **4,500** (from 4,400), citing strong earnings momentum, AI exposure, and a _"structurally weak yen"_ that helps exporters.
• Their read: a sharp yen strengthening looks less likely than in 2024, but a shock — from AI sentiment or geopolitics — could still trigger a rapid unwind of crowded positioning.

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