Japan

  • 02 Oct
    International diversification could be a good thing with BRDCY

    International diversification could be a good thing with BRDCY

    One of the principles a lot of investment advisors and money managers point to when they talk about risk management is diversification. Diversification means spreading your investing dollars across multiple different opportunities. The general idea is that the greater your diversification, the less exposed you are to risk in any one stock. More →

  • 17 Aug
    Are Safe Havens Really That Safe?

    Are Safe Havens Really That Safe?

    • Economic laws can’t be muted forever, and in the end always get their due, therefore it is good to look at other options to de-risk your portfolio.
    • Gold is too volatile to be considered a safe haven.
    • Diversification should be the best option to avoid losing everything in a market downturn.

    Introduction

    Economics is pretty straightforward. The first thing they teach you in ECON 101 is that the economy works in credit cycles. In a positive environment with low risks and low base interest rates, people borrow and spend. They buy a new car, go on trips, refurbish the kitchen and so on, which leads to economic expansion. More →

  • 05 Aug
    Where The Risks Are: It’s Not Where You Might Think…

    Where The Risks Are: It’s Not Where You Might Think…

    • Car sales are in a downtrend and PMI is falling, which ties the FED’s hands.
    • Japan has just entered into direct economic stimulus with $273 billion.
    • The Bank of England behaves like the economy is in a depression, cutting rates and printing money.

    Introduction

    Yesterday we discussed how China isn’t as big of a risk as many would like to make it out to be. Today, we are going to go through the latest data from the U.S., Japan and Europe in order to assess their riskiness. More →

  • 15 Jul
    Could It Be A Good Idea To Invest In Japan? There’s Upside Potential…

    Could It Be A Good Idea To Invest In Japan? There’s Upside Potential…

    • Price to book is 1.1 and price earnings ratio is at 15.
    • More monetary and fiscal stimulus can be expected.
    • Even if the economy doesn’t pick up Japan is relatively cheap.

    Introduction

    We read a lot about how Japan has been in an economic slump for the past 30 years, how incredibly large amounts of quantitative easing have not triggered inflation, and that Japan should be avoided as an investment opportunity. More →

  • 06 Jun
    Headline Rollercoaster: The Economic Limbo Continues

    Headline Rollercoaster: The Economic Limbo Continues

    • Europe and Japan continue with their easing policies as not much changes.
    • Chinese Purchasing Managers’ Index is positive but not far from stagnation.
    • US data flirts between a dead cat bounce and a stronger economic recovery.
    • Finding specific good investments should be the best answer to uncertain economic times ahead.

    Introduction

    Last week was an interesting one as it was filled with various economic news. It is important to summarize that news to see if it will move the needle as the market has moved only sideways since December 2014. More →

  • 25 Apr
    A Broader Perspective on the Global Economy

    A Broader Perspective on the Global Economy

    • Easing monetary policies go on globally but do not seem to fuel sustainable growth.
    • China is slowing, Japan is looking toward another recession, and the global outlook is adjusted downwards.
    • Bad news might be around the corner, but good news is as well.

    Introduction

    News is usually focused on the latest happenings. The fact that the human brain is set up in a way that it always tries to focus and eliminate marginal information brings to the consequence that most people do not objectively analyze the world around them. An example: How many blue cars have you seen today? Probably none because you were not looking for them, but as soon as you focus on them you will be surprised by how many you will see. The same applies to finance. More →