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)
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)