Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Japanese Nikkei Hits 26-Year Low: Stock Market Bargains Galore …

Stock-Markets / Japanese Stock Market Nov 04, 2008 - 11:58 AM GMT

By: Money_and_Markets

Stock-Markets

Best Financial Markets Analysis ArticleTony Sagami writes: Black Monday, October 19, 1987, seems like a long, long time ago, doesn't it? The Dow plunged from 2,246 to 1,738, losing a whopping 22% in a single day.

I was a retail stockbroker at the time. And it was ugly. Really ugly.


Now I'm starting to hear lots of comparisons and concerns that we might be moving towards another 1987-type drop.

I do believe that the U.S. market is headed for more trouble. Yet the Dow is still five times higher today than it was on Black Monday.

The Japanese, however, can't say the same thing about their market.

The Nikkei 225 Average Hits a 26-Year Low …

The Nikkei has lost more than 20% of its value in the last month and is down by more than 40% for the year, capped by a 9.6% one-day loss last week. That put it lower than it was back in October 1982.

Things are so bad in Japan that its new Prime Minister, Taro Aso, described what is happening as “a harsh storm seen only once in 100 years.”

Aso, who has been in office for less than two months, is combating Japan's economic weakness with an aggressive stimulus package to prop up the stock market and stimulate consumer spending.

The package includes:

'A harsh storm seen only once in 100 years.' – Japanese Prime Minister Aso
“A harsh storm seen only once in 100 years.”
- Japanese Prime Minister Aso
  • 2 trillion yen of direct payments to every Japanese household. A family of four will receive a check for 59,454 yen (US$600) to encourage consumer spending …
  • 5 trillion yen in new government spending on infrastructure and public works projects …
  • 2 trillion yen for a bank rescue payment to encourage small business lending …
  • Cutting expressway tolls …
  • New tax breaks for mortgage loans …
  • Extending a tax cut on capital gains, and …
  • Tax credits for child and elder care.

Will the Japanese government's stimulus package work? Only time will tell.

But I Think There Are Now Plenty of Bargains in the Japanese Stock Market!

If the Dow dropped to its 1982 lows, it would be at 895 today. Yes, 895!

Thank goodness our market has held up better than that. But what would you do if the Dow was below 1,000?

Would you sell everything and head for the hills? Or would you consider it to be the buying opportunity of a lifetime?

I'll tell you what I'd do: Jump in with both feet and buy, buy, BUY!

And right now, I'm suggesting that Japan represents a similar opportunity.

If you agree, here are …

4 Ways to Invest in Japan …

  1. Japanese Mutual Funds : There are dozens of no-load mutual funds that invest in Japanese stocks such as T.Rowe Price Japan (PRJPX), Fidelity Japan (FJPNX), or the Japan Fund (SJPNX).
  2. Japanese ETFs : If you're more of an exchange traded fund investor, there are several ETFs that focus on Japanese stocks such as iShares MSCI Japan Index Fund (EWJ), WisdomTree Japan Total Dividend (DNL), streetTRACKS Russell Nomura Prime (JPP), and streetTRACKS Russell Nomura Small (JSC).
  3. Japanese stocks listed in Tokyo: It's easier than you think to invest in Japanese stocks thanks to discount brokers like E*Trade. You can trade on six different foreign markets, including Japan, at E*Trade for only $21.95 per trade. You don't have to open a fancy or complicated account either.
  4. Japanese stocks listed in the U.S.: You may not realize it, but there are dozens of Japanese stocks that are listed on the New York Stock Exchange or Nasdaq.

    Examples include: Canon (CAJ), Hitachi (HIT), Honda (HMC), Kubota (KUB), Mitsubishi Financial (MTU), Nintendo (NTDOY), Panasonic (PC), Toyota (TM), and Sony (SNE).

Let me tell you a little about Sony …

Sony just reported a 72% drop in third-quarter profits and chopped its forecasts for the rest of the year.

That's because Sony, like all Japanese exporters, is suffering from lower global demand and a rising yen. A stronger yen hurts exporters by raising the price of their goods overseas, reducing the yen value of profits earned abroad.

What's more, Sony's stock has taken such a thumping that it is now trading for less than its book value. Yup, the value of all of Sony's buildings, equipment, land, and other physical assets is worth more than its total stock value!

In fact, the market value of all of Sony's shares is around $21 — about 60% of its underlying book value.

Sony isn't the only Japanese stock trading below book value, either.

Am I suggesting that you rush out and buy a bunch of Sony or any other Japanese stock?

No. Only you can decide what's right for your own portfolio and investment needs. As always, you should do your own research before you make any decisions.

But I DO suggest you take a very close look at Japan right now. Because a few seeds planted there could grow into some mighty big winners in a few years.

Best wishes,

Tony

This investment news is brought to you by Money and Markets . Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com .

Money and Markets Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in