As “Experts” Grow Bullish on Japan, Money Morning Sees Reasons For
Now that Japan’s Nikkei 225 is half the relative price of the S&P 500 – and the cheapest it’s been
in three decades, investors are flocking to invest in Japan. But now is not the time to invest in
Japan, according to a new article from Money Morning.
Baltimore, MD Vocus) June 30, 2010 -- Now that Japan’s Nikkei 225 is half the relative price of the S&P 500 –
and the cheapest it’s been in three decades, investors are flocking to invest in Japan. But now is not the time to
invest in Japan, according to a new article from Money Morning.
In fact, Money Morning’s Chief Investment Strategist Keith Fitz-Gerald is cautioning investors to stay far away
from Japanese investments.
“There are still world-class businesses in Japan, and yet, I’ve never seen a more-nightmarish situation than the
one currently plaguing Japan’s economy,” says Fitz-Gerald.
And he should know. Keith Fitz-Gerald is a noted author, investors and commentator and a 20-year veteran of the
Asian markets. He also spends part of each year living in Japan – where he filed this report.
In his latest article for Money Morning, Fitz-Gerald explains why this isn’t the time to invest in Japan:
· Japan’s market is a demographic disaster characterized by a rapidly aging population and low birthrate. How
exactly will lagging domestic consumption ever improve?
· Japan is almost entirely dependent on exports. If they can’t take up the slack caused by weakening domestic
consumption, the Nikkei will only fall further.
· Japan’s debt as a percentage of GDP is nearly 200% - the highest on the planet. This makes Greece’s debt
ratio of “only” 115% seem almost manageable by comparison!
· Japanese firms have some of the highest manufacturing costs on the planet. How will they ever compete with
neighbors like China and Korea?
Find out all the reasons investors should ignore the hype and stay away from the land of the rising sun in:
“Experts” Grow Bullish on Japan… Even