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Toyota Motor Corp. (NYSE ADR: TM) stock makes up 5.7% of Japan ETF the WisdomTree Japan Hedged Equity Fund (NYSE Arca: DXJ). The DXJ portfolio is heavily exposed to the Japanese auto sector and is up 8.6% on the year.
Japanese automakers are the best stocks to buy right now because, as Money Morning Chief Investment Strategist Keith Fitz-Gerald said, they are "princes of export."
Japan isn't seeing substantial growth from its domestic consumers. "Anything that is targeting the Japanese consumer all by itself is probably not a good bet." Fitz-Gerald said. That's why automakers who deal heavily in exports are the way to go.
"The weakening yen that's so much going to be a part of Abenomics is going to benefit those companies as they repatriate earnings from around the world," Fitz-Gerald said. "They're tapping into markets outside the Japanese domestic consumption model."