• 48 Hour ... 48% Off Hedgeye Gear Sale!

    That’s right. Get anything you want in our online store for 48% off. Offer lasts 48 hours. 100% of profits go to Hedgeye Cares - our employee driven charity.

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)