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

To: chirodoc who wrote (1046)	5/26/1998 8:14:00 AM
From: Elmer	Read Replies (2) \| Respond to of 3902

chiro, All of the companies you mentioned are great Japanese blue chips. However, if you are looking to Japan as a hedge against a bear market in the US, I don't think they will be the best performers. That's because they are all major exporters that will suffer if the US economy slows and/or the yen strengthens. I would recommend consideration of smaller companies that are more dependent on the Japanese economy. The Japan OTC fund is an example but you have to pay a 20% premium as it's a closed end fund. If you have an account with a Japanese broker, conventional wisdom says that you buy trucking companies, broadcasters and advertising agencies as these industries almost always lead as an economy comes out of recession. Finally, John Rothchild has recently published a new book titled "The Bear Book." Rothchild is the guy who wrote the Peter Lynch books. Reading it has scared me about the continued strength of the US markets. It discusses how you should position your investments comming out of a bear market like the one in Japan. It's worth a read. Regards David