Want to Hedge N. Korea Risk? Think Japanese REITs, Asean Stocks
- S. Korea’s tech powerhouses are most vulnerable to escalation
- Defensive Japan equities to outperform, Societe Generale says
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Investors looking for ways to hedge against North Korea risk as war drills get underway should focus on Japanese real estate investment trusts and the Asean markets, according to Societe Generale SA.
Japanese REITs are favored as a safe haven because they offer a 3.8 percent dividend yield, are not correlated with the stock market and outperform when the yen rises, strategists Frank Benzimra and Rajat Agarwal wrote in an Aug. 21 note.