🇪🇸 Goldman Sachs: Are Japanese Stocks Flashing 2024 Warning Signs as the Yen Surges?
Goldman Sachs Research flags eerie parallels to July 2024, when a sudden yen surge triggered a 24% drop in Japan's TOPIX index.
• Foreign investors' Japanese equity positions now sit 20% above pre-2024-correction levels, with hedge fund allocations in the 98th-99th percentile of the past five years.
• GS still raised its 12-month TOPIX target to 4,500 (from 4,400) on strong earnings and AI-driven growth exposure — vs. 3,960 as of Aug 3.
• Base case is a gradual yen decline, not a repeat shock — but an AI-narrative wobble or geopolitical jolt could trigger rapid de-risking.
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