Lombard Odier buys oversold Japanese stocks; urges investors to keep calm

SINGAPORE (June 28): Jean-Louis Nakamura, the Asia chief investment officer at Swiss wealth management firm Lombard Odier, is urging investors to “keep calm and refrain from making outsized adjustments” in their portfolios in the aftermath of Brexit.

“There is little doubt that sentiment will remain fragile in the very near term. We caution, however, against extreme negative over-reaction to the news of the UK’s referendum,” says Nakamura in a recent note to clients.

The CIO reveals that his investment team that manages discretionary portfolios for clients took the decision to load up on Japanese equities on June 24 when stocks in the Land of the Rising Sun sank a whopping 8% in a single day. Japanese stocks were battered after the yen unexpectedly strengthened to a USD/JPY level of nearly 100 on Friday due to widespread risk aversion caused by Britain’s decision to leave the EU.

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