Even thought the Nikkei fell from ~40,000 to 15,000 etc and stayed there for 10 years, Sony and many other innovative japanese companies did much better than that.
I'm sure there are some corporations in the U.S. that will continue to do well in the face of a broad downturn. I wish I could predict which ones these might be though! They tell me that during the Depression in the thirties, the entertainment industry did well because so many unemployed people went to see the "motion picture show" matinees. I'm sure people will still eat junk food too. But I wouldn't invest in that. I think gold and silver mining companies may do well.
US is a hotbed for such companies, the indices get rebalanced all the time.
And the Nikkei doesn't rebalance all the time? Anyway, from the 60's to the early 80's, the U.S. market did poorly, except for a few big corporations. The situation in Japan is very similar.
US also doesn't have the banking problems that japan still has...
Did Japan have these banking problems before their market crashed? Check back in a few years and see just how well our banking system is doing, after we've had a healthy fill of personal bankruptcies, failed VC firms, foreclosures on dot-com real-estate loans, etc. etc.
... and also people want to move here, always have - when did people really move to japan ?
Let's see if people still want to move here when our economy is no longer healthier than their own. As for moving to Japan, I agree, but so what?
I think these comparisons are idiotic at best.
You must be referring to your comparison about immigration rates. I agree.
Dave |
