re Japanese -
I agree that the yen is overvalued - in fact that is a big problem for the export oriented economy. In my view, if you purchase companies with a reasonable export exposure, you are well hedged with respect to the Yen, because earnings will soar with a lower Yen. FWIW, the Yen already retraced 5% from peak values, so that is a boon for exporters. my sense is also that these export companies will move more facilities into cheaper locale, boosting earnings LT.
I can understand where Paul is coming from. Japan is different and the companies are run different. They remind of stocks I looked at in the 80's in Europe. Lot's of stocks with fairly low rentability but lot's of "substance", tangible book , cash, RE, land that is not reflected in the current value. if those values ever get lifted (and I am seeing signs of this), then Japanese stocks should do exceedingly well.
I am probably going to enter some new positions but only after the prices come down a bit. |
