Masanari Takada (高田将成) of J.P. Morgan Securities said on a program that taking a contrarian view of news and following earnings trends in the autumn would affect the investment environment.
The earnings surprise index shows greater upside surprises in external demand than in domestic demand, and growth stocks are considered more likely than value stocks to receive upward revisions.
U.S. manufacturers are said to remain keen to invest in capital expenditure, with no signs of overheating. This suggests that actual demand in the United States could support the earnings of Japanese companies.
Hedge funds' net positions remain at high levels, while bond portfolios are said to be increasingly positioned for rising interest rates.
The view has been expressed that changes in central bank policy will not undermine the foundation of stable stock market supply and demand, while seasonality and year-end market movements have been cited as issues for investment strategies.