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Strategies & Market Trends : JAPAN-Nikkei-Time to go back up? -- Ignore unavailable to you. Want to Upgrade?

To: Julius Wong who wrote (3863)	12/29/2010 7:31:53 PM
From: Crossy	Read Replies (1) \| Respond to of 3902

re: Japanese market 2011 and beyond Julius, after a long time, I've been eyeing investing into Japanese firms again. Reasons are that their economy has already left recession in 2010 but appears poised to leave deflation behind it in 2011. Interestingly, the current japanese government led by the "DPJ" (sort of a center-left alliance of union bosses and urban welfare distributors plus Ozawa's centrist powerbroker faction) appears to be one of the most inept that the country ever had (at least to me). Within a short time frame, a lot of Koizumi's accomplishments on becoming a flexible market economy were already destroyed, while handouts to core election groups rose sky high ("money for nothing"). At least, the DPJ is not as beholden to rural parochial interests as that particular LDP faction previously in power post-Koizumi. The electorate already voiced a motion of no-confidence to the DPJ during this summer's upper house election, when voters defected en masse to a new party termed like "minna non to" which means "Your party", a grouping that vowed to build and expand on Koizumi's pro-market legacy. This new bloc instantly captured the #3 spot in the upper house elections - consequently the DPJ already had to give in to demands to lower corporate taxes from 40% (abyssmal high) to 35% More to come in this regard after the budget battle - very likely the opposition (controlling the upper house) will demand snap lower house elections in exchange for the budget's passage. The new grouping should do very well among pro-market forces in the metropolitan centers and suburbian ranges. They will demand lower taxes and monetary policies a la Bernanke (inflation targeting, quantitative easing, etc.) so I guess the stage is set for a nice rebound in Japanese markets. I'm again exploring the sectors I like best (more or less all cyclical and export sensitive) : materials, semis and advanced industrial equipment best to you CROSSY