Jul

29

I cannot find a single compelling reason to own Japanese stocks (but for one.) The demographics are horrible. Their debt problems may be worse than Greece. They get hit by catastrophic earthquakes, tsunamis and radiation. Even Toyota is a mess. So (other than the fact that their stocks are reasonably priced, and in some cases, extremely cheap), am I systematically nibbling at Japanese stocks with a *10+ year* horizon? The answer is: any country that doesn't like the cult of apple cannot be all that bad. check out this article on the subject.

James Goldcamp adds:

As a casual observer another interesting anecdote confirming the degree to which Japan is out of favor is the bleed out of assets in Fidelity's Japan and Japan Small Companies fund. Not surprisingly in a yield hungry world their junk bond (C&I) and floating rate loan funds (variations of low quality debt) are near an all time high.


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