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I get a lot of questions about Japan, and whether or not I think it's cheap, and/or if the activists are going to continue to prevail against Japanese corporates.

Yes, Japan is cheap, but cheap assets can get cheaper; particularly if you don't have an asset specific catalyst in mind.

The Nikkei closed up +0.92% overnight at 13,360, and I'd have to see a close above the 13,537 line in order to get more constructive on the region.

Fundamentally, the Bank of Japan assured us overnight that things are worsening in 8 out of their 9 economic regions. My old friend inflation was cited as the primary reasoning for dampening growth.

The March 2008 lows on the Nikkei remain a lot lower. Be careful out there if you're trying to be the Buffett of Asia.

It is global this time, indeed.
KM

(Chart courtesy of stock charts.com)