Markets Face 'Points Of Fragility'; BCA Warns Japan Remains An Underestimated Risk

Authored by Dhaval Joshi via BCA Research,

2025 Key Views Update

• Our hypothesis that tech stock valuation downside and yen upside are exposed to a normalisation of the Japanese real bond yield is yet to be fully tested. On a medium-term horizon, this is an underestimated risk that justifies overweighting the yen and underweighting overvalued tech.