Brian,
I'm sorry that I was so rude. I attempted to delete the post but my null edit was apparently unsuccessful.
As I mentioned to Andrew, the Japanese market has finally become cheap enough to buy and the policy makers finally got scared enough to start taking the bold actions necessary to ensure greater transparency, liquidity, and hopefully inspire the confidence of Japanese consumers and global investors.
Japan is selling at half the price/bv of the American market because it has been in a bear market for the last 11 years. It is incomprehensible to me that you can write: "You state on the one hand that the Japanese market is selling at only one-half the book value here, and yet it has been in the grip of the bear for 11 years." [Italics added for emphasis.] This is highly confusing sentence structure because it makes it appear as though there is a contradiction. There is absolutely no contradiction.
Your writing style needs improvement, Brian. I suggest keeping your sentences short and your ideas crystal clear.
Your point (and Andrew's) about inflated Japanese BV due to lack of mark-to-market accounting discipline is justified but is in the prcess of being addressed. Other aspects of BV, however, are understated, including IP, patents, brands, etc. and the Japanese have some of the best franchises in the world. Global investors like Templeton's Mark Mobius are much more astute than I am and have documented the value disparity between Japan and US better than I have.
Again, sorry I was so impatient and rude.
Sam |
