Alexander Green

Here’s a handy way to know when to sell your investments: everyone is talking about them.

There is an obvious corollary to knowing what to sell. If you want to know what to buy, consider what no one is talking about.

And that brings me to investing in Japan…

From a high near 40,000 in 1989, the once-mighty Nikkei 225 – the equivalent of our S&P 500 – fell over 80% and hit a 27-year low early last year. It’s still more than 70% below the highs of 21 years ago.

The main culprit – aside from a real estate bubble that made the one here in the United States look bush-league – was misguided government policies. Japan waited too long to clean up its ailing banking system and spent trillions on public works projects that simply weren’t needed.

However, Japan has a new government that has promised to shrink the country’s massive bureaucracy and cut wasteful public spending. It also intends to end more than 20 years of economic stagnation by cutting taxes and focusing on small and mid-sized businesses.

Japanese stocks have rallied off the lows of 10 months ago. In fact, the Tokyo Exchange is one of the world’s best-performing bourses so far in 2010.

But it’s still among the cheapest and most unloved in the world. Virtually no one is enthusiastic about Japanese stocks.

Alexander Green

Alexander Green is the Investment Director of The Oxford Club. A Wall Street veteran, he has over 20 years experience as a research analyst, investment advisor, financial writer and portfolio manager.

He is also Chairman of Investment U, an Internet-based research and education service with over 300,000 readers. He currently writes and directs the twice-weekly Oxford Portfolio Update e-letter and three short-term trading services: The Momentum Alert, The Insider Alert and The New Frontier Trader. Mr. Green is also the author of The New York Times bestseller The Gone Fishin? Portfolio: Get Wise, Get Wealthy...and Get On with Your Life.

  • john_slock

    I hope you have a better fundamental case for Japanese stock than just “nobody’s talking about them”. Nobody is talking about Burma real-estate, used refrigerators or pine trees either, but that doesn’t automatically make them good investments.

Recent Articles

Got Tech Stocks? Sell These Flops Now…

Greg Guenthner

The latest victim of the crude rout is none other than the stalwart tech stocks. These are the go-to trades that have held up all year long. I'm talking about stocks like Google, Yahoo! and Microsoft. Like I said before, these aren't no-name stocks you're seeing drop more than 10% from their highs last month.


Three Time Bombs in Your 401(k) and How to Disarm Them Now

Dave Gonigam

By the time you do… Kaboom! It’s too late. They’ve already blown up your retirement. There are three time bombs the mutual fund industry has planted within your 401(k). By the time you’re done with this article, you’ll know how to identify them. And, more importantly, how to disarm them. Dave Gonigam has the scoop...


A Strong Dollar’s Not All That Bad

James Rickards

On the eve of the FOMC’s meeting announcement, our CIA financial strategist suggests, “To beggar thy neighbor or not… that is the question.” Read on to find out why having a strong dollar is good for you, but not so good for the Fed...


The Great Unraveling of the Commodities Super Cycle

Greg Guenthner

There's an entire parade of metals and energy plays running off the side of Commodity Mountain like a herd of lemmings. Gold cracked $1,200 after a $30 drop. Silver cratered more than 5% on the day. Copper fell another 2% Natural gas is down. Heating oil is down. Oh, and our main culprit, oil, coughed up another 4%. And that's just yesterday's losses...


Same Currency War, New Battle Phase

James Rickards

The current global currency war started in 2010. Our own Jim Rickards published his book, Currency Wars, soon after that. One of the points that he made in the book is that the world is not always in a currency war. But when we are, they can last for a very long time. They can last for 5, 10, or 15 years, sometimes longer. Read on to learn the latest battle phase of the current currency war...