<they absolutely have no long term strategy for meeting Chinese competition>
Who does? Canada's solution, which seems to involve selling the resource gems of Canada to Chinese so South Africans can work on them while unemployed able-bodied Canadians stay in a relatively balmy Toronto (vs Ft McMurray), is no solution when the huge investment inflows from China and India (recycled US dollars) required to develop the resource (because Canada doesn't have the money, Ottawa has been spending it on sponsorship and gun registries) drive up the currency so high manufacturing in Ontario grinds to a halt. No long term there either, in case you haven't noticed. So Canada doesn't have a long term solution either but you own Canadian stocks, don't you?
I didn't get the relationship to my personal tax situation, but I assume you mean selling? Well, yes, maybe after 10 years, but is that short-term to you? I mean if I can get 300% out of a 6 year run in Japan stocks I should turn that down because I might have to sell?
Some people around here invest in buildings in Japan, but they don't sell? I don't understand you here.
Japan will be fine, they have completed their triple waterfall crash, they have undergone max pain, sure they have debt (it is funded from internal savings) but who doesn't? Besides, you're either an investor, or you aren't. Anyway, I have spent the last few days analyzing Japanese companies. So, take KUB, PE of 8, selling diggers to China and the oil sands and infrastructure projects in India and competing with
CAT PE=17
BUCY=39
JOYG=36
I'd have to say undervalued.
Anyway, 2 trillion dollars comes out of post offices and TOKIO.PK starts selling investment trusts and after MTF merges with UFJ they'll be the largest bank (Japanese love the 'brand') by capitalization so between these two they mop up a few *hundred billion* in new accounts, because Koizumi's plan is all about strengthening the banks. So a management fee of 0.25% on some mutual funds and trusts and on each $100 billion dollars you're talking $250m/yr of new income for these guys.
It's an investment, not a solution to the problems of the world.
When the US goes into its triple waterfall crash, fund managers invest in Japan. Why? Because right now it is still the #2 economy and much more palatable than putting the same dollars to work in Brazil or China. |
