3 Japanese Icons You Must Sell
For decades, these companies represented the best quality, most innovative products on the consumer and industrial markets...but how the mighty have fallen, notes Keith Fitz-Gerald of Money Morning.
Many investors have piled into Japan lately, reasoning that somehow this will be "the year" Japan turns around and there will be lots of money to be made.
I don't disagree—only the big profits are on the short side, especially when it comes to these three iconic Japanese tech brands. As I quipped earlier in the year, it's more likely that Godzilla will walk out of Tokyo Bay again than it is that Japan will suddenly rebound.
I am well aware that this is not a popular thought, and that it will likely earn me my share of wrath on the Internet. Save your breath and your keystrokes. Having spent more than 20 years in country, I am intimately familiar with the arguments.
For example, value-oriented investors consistently remind me that the Nikkei is "dramatically undervalued." I am also well aware of the "construction boom" that was supposed to follow the tsunami and nuclear crisis. And I still continually hear from the statistically motivated that the Japanese economy just "has to turn around" because it's exceedingly rare that an economy remains in the doldrums after 20 years.
Let's review. The Nikkei remains 75.5% off its December 29, 1989 peak for a reason. That means it's going to take a 308.19% gain just to get to break-even, based on where it's trading as of this writing.
If you think that's a sure thing, I'm happy for you but wish to point out that business conditions now are hardly conducive to the kind of growth that got the Nikkei there in the first place.