Record Bets Against Japan Stocks Tell Investors Time to Buy
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As bets pile up against Japanese stocks, investors with $293 billion in client assets see the pessimism as a signal to buy. History is on their side.
Short-selling on Tokyo’s bourse jumped to the highest on record this month as the Topix index tumbled 7.7 percent from a six-year high in September. Shares have rallied an average 9.7 percent over the three months following surges in bearish bets since 2009, according to data compiled by Bloomberg.