What will be the investment game changer in 2013?

This week on Wealth Track investment game changers, in part of our exclusive interview with Ed Hyman, Wall Street's long time number one economist and Block Rock's great investor Dennis Stattman. They identify with who would be the three biggest players of 2013, next on Consuelo Mack Wealth Track. Tell us about, you know, the outlook for Japan and then that could be the big, you know, surprise in 2013, right? -I've been born so many times in Japan. I have no finger left to really touch one, but I'm watching it. I was in Japan, in Tokyo, when Abe -Uh-huh. -emergence occur which was almost overnight. -since Shinz? Abe, right. -The Prime Minister and it was a landslide victory, which was not-- It was certain he was gonna win, but it wasn't certain by what margin and it was a landslide victory, and so this is a pretty good chance for Japan to shine. The markets have responded very strongly. The Yen, was their focused on, has weaken significantly, which is what they want. -Right, versus the dollar, uh-huh. -I guess versus all currencies. -All currencies, right. You're always well on that and as intended, right, to make your products more competitive, right, and they will have a new head of the central bank in a few months and that new head will be much more [unk] than Shirakawa the current head has been. -Meaning, that he want to ease more, he won't be afraid of inflation. He'll-- -Right. -And if I could go back to earlier thoughts, you know, this is an environment where there'd been 300 easing moves around the world. So, now Japan is joining something, not an outlier -Uh-huh. -and the bank stocks for example in just a few weeks have rallied 30%, you know, bank stocks are an important, sort of lead horse in economic futures and so, you have Japan doing better, you have China doing better, you have housing doing better, and United States and Europe, I guess, maybe the tail on the downside has been cut off, such a pretty interesting package. -Definitely is, so Japan. Talk to us about the investment opportunities in Japan and you are overweighting Japan in the global allocation fund. -Very much so, one might think of Japan as the land of false dawns and indeed there have been ever so many of them in the past 23 years. It's really been a 23-year bear market -Right -in Japanese stocks from of yet an extremely high starting point and it's led to an enormous amount of skepticism, so many people have been wronged so many times about Japan that they're come to believe they're gonna be wrong again. We think that in fact it's very possible that we're seeing a title change in the economic situation in Japan with respect to the stock market. Ed referred to the election. The election was a landslide in favor of Shinz? Abe and the LDP and they very much run on a platform of reflation, getting out of deflation, getting into inflation and weakening the Yen. Japan really has not moved to weaken the Yen before this and we think that is going to be a very powerful stimulant to the Japanese economy, to Japanese corporate profits, and to the Japanese stock market. There are an enormous number of skeptics about the Japanese stock market. There are an enormous number of skeptics about the Japanese stock market, and there is a ton of money on the sidelines that could come in to Japanese stocks. -From overseas or-- -From overseas, from Japanese individuals, from pension funds, from government pension funds, from corporate pension funds. If you look at their exposure to Japanese equities on average of the government pension funds and the corporate pension funds have less than 20% of their assets exposed to the Japanese stock market, in fact between 12 and 16%. If you compare that to other countries, it's really miniscule. -Right. -People don't understand how powerful money coming in to the Japanese stock market can be. They don't understand how a liquid it has become. Japan is the world's third largest economy and second biggest stock market, but we took a look at the illiquidity in Japanese stocks, unbelievable. The 100 largest stocks in Japan in terms of trading volume taken together, average less volume in 1 day than Apple computer. -The top 100-- -The top 100, so when money comes into the Japanese stock market, it has the potential to move it a great deal. So, we're very bullish on the Japanese stock market. We're bearish on the yen. And we're bearish on the Japanese bond market.