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kaskoosek (99.78)

Move money out of US market and put in Japan (NOWWWWW)

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September 01, 2009 – Comments (10) | RELATED TICKERS: EWJ

Japan very undervalued compared to the US market, thats what Marc Faber just said.

 

If you look at the nikkei index and compare it with the S&P from 1996 till 2009 (13 years) you will get a scary graph. The S&P is up 60% while Japan index is down 40%. I am pretty sure that the japanese market is going to outperform the US market from here on. They also have got a large chinese market to sell products to.

http://finance.yahoo.com/echarts?s=EWJ#chart1:symbol=ewj;range=my;compare=^gspc;indicator=psar+stochasticslow+macd+rsi;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Just compare the japan msci index to the S&P. All I can say is wow. All americans are in equities while Japanese citizens are not. We can also expect from the US a higher level of taxation due to huge budget deficits. Indebted citizens also.

http://www.bloomberg.com/avp/avp.htm?N=av&T=Faber,%20Alkire,%20Fink%20Own%20Words%20on%20Japan%20Election,%20Stocks&clipSRC=mms://media2.bloomberg.com/cache/vQ8TIDHz4M4E.asf

10 Comments – Post Your Own

#1) On September 01, 2009 at 11:23 AM, JakilaTheHun (99.93) wrote:

Japan's debt problems are much larger than the United States, so I wouldn't buy into Japanese stocks based on the US debt load. 

I'm neutral on Japan right now.  I don't feel like I know enough to gauge their prospects moving forward.  I'd actually be more bullish on one of China's forgotten neighbors: Mongolia.  Unfortunately, not much of a way to "buy into" Mongolia.  No ETFs that I'm aware of.  

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#2) On September 01, 2009 at 11:34 AM, kaskoosek (99.78) wrote:

JakilaTheHun

From a macro perspective, a country which accumulates foreign reserves and has a positive trade balance does not have debt.

 

Yes the government is indebted only due to semantics, because of the very high saving rates of the populace. 

 

 

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#3) On September 01, 2009 at 11:50 AM, lemoneater (72.87) wrote:

I thought that I read somewhere that Israeli stocks were a good buy as compared to the U.S. Is that correct?

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#4) On September 01, 2009 at 12:38 PM, Mark910 (< 20) wrote:

Change the graph to the year 2000 and you will see all the difference is prior 2000.  Both graphs track after that.  Not sure 10 year old data says what you say it says.

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#5) On September 01, 2009 at 12:48 PM, TMFMarathonMan (98.18) wrote:

The fundamental difference between debt positions of these two countries is that the majority of Japanese government debt is held domestically -- the same can't be said of U.S. government debt.

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#6) On September 01, 2009 at 1:08 PM, streetflame (99.82) wrote:

"From a macro perspective, a country which accumulates foreign reserves and has a positive trade balance does not have debt."

There is not just one macro perspective, and macro doesn't mean you have to treat an entire nation as a single entity.  That is too simplistic to be very useful.  The Japanese government's debt is quite relevant to investing decisions.

All - what are your favorite Japanese stocks?  I like FANUY.PK and IIJI, but have not found too many others that I like much trading on the US markets.

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#7) On September 01, 2009 at 1:24 PM, kaskoosek (99.78) wrote:

Streetflame

 

I want to have an exposure on the whole country and not just one stock, that is why I favor EWJ. 

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#8) On September 01, 2009 at 7:44 PM, cbwang888 (29.79) wrote:

Euro/Asia-Pacific fund (AEPGX) is where my 401K money parks. It includes Japan, India but excludes China.

Not only it will gain on global recovery or inflations, it will also gain on USD weakness.

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#9) On September 02, 2009 at 3:42 PM, caterpillar10 (66.35) wrote:

i like marc faber overall - that's why i know he's been pushing the japan indexes and FXY for @ least 3 years, maybe he's right this time but i had to move on. they are high on their new government, like we used to be, so you might get a parallel result there for awhile but they can do it w/o me:)

 

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#10) On September 02, 2009 at 4:04 PM, caterpillar10 (66.35) wrote:

FXY was a pretty good hedge last year........i'm gonna look @ that again, thanx

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