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Strategies & Market Trends : JAPAN-Nikkei-Time to go back up? -- Ignore unavailable to you. Want to Upgrade?

To: borb who wrote (1024)	5/20/1998 12:56:00 PM
From: eWhartHog	Respond to of 3902

Yes, it's the Japan WEBS.

To: borb who wrote (1024)	5/20/1998 11:04:00 PM
From: synchro	Read Replies (1) \| Respond to of 3902

EWJ is not an exact proxy of Nikkei, I think it tracks Morgan Stanley Capital International's EAFE Japan component. As such it is more like the Topix index. MSCI EAFE is capitalization-weighted, Nikkei is like the Dow--price weighted but with 225 stocks instead of 30. However, they are all highly correlated, so it does not really matter which index you short. If you want to go long, I think it's better to do your own stock selection either via ADR or buy direct. The indexes have a lot of cats and dogs that may not survive when it is all said and done. It seems to me that the Japanese gov't is determined to not let the Nikkei drop below 15,000.