He may be one of Wall Street's biggest bears, but that doesn't mean veteran market watcher David Rosenberg isn't finding places to put money to work.
Gluskin Sheff's chief economist and strategist is just going halfway around the globe to do it.
"The one part of the world which looks very good to me right now, a great turnaround story that's under-owned, is Japan. The Nikkei is breaking out," said Rosenberg said Friday on CNBC's "Trading Nation."
He added: "I think even a child could see that the 30-year secular downtrend has been broken over the course of the past couple of months."
The Nikkei 225, Japan's benchmark stock index, has soared nearly ten percent over the past three months. It's now up 15-percent so far this year. But it's still about 56 percent way from its all-time high hit in 1990.
According to Rosenberg, Japan has one of the few markets that isn't trading expensively to its historical price earnings ratio — noting "almost everybody else in the world is."
Rosenberg was one of Wall Street's first strategists to turn positive after the 2008 financial crisis. He has suggested that investing in U.S. stocks right now could be like playing Russian Roulette with your money.
In June, he warned investors on "Trading Nation" that fresh stock market records were creating a false sense of security.
Despite his warnings, stocks seem to be firmly holding onto its win streak. The major indexes for the week wrapping up the final full week of October on fire. On Friday, the Nasdaq and the closed at fresh record highs, while the Dow set an intraday record. The S&P and Dow have now locked in seven weeks in row of gains.
But the momentum in the U.S. isn't making Rosenberg any less bullish on Japan, a country he believes is in a mid-stage economic cycle versus a late one.
Plus, he doesn't think investors should shy away from Japan, even with the North Korea missile threat lurking under 600 miles away.
"What's interesting in Japan is that the small cap stocks are starting to outperform large cap stocks. So, what that's telling me is that this is more than just buy Japan because of the weak yen. This is actually a much more fundamental story that people are missing," Rosenberg said.
"Japan is probably the most under-owned stock market on the planet from a global portfolio manager perspective," the economist added.
