Continuing with the former Fed economist, Richard Koo call on the upswing in the Japan economy due to the recovery spending. Here’s a piece for you contrarians out there who might wish to dabble in Japanese equities. See Japanese Economy Contracts Less Than Estimated on Post-Tsunami Investment
If I had more time, I would have delved more into international stocks for diversification. Diversification across uncorrelated assets and alternative investments is the key to chasing the alpha and hedge away that beta.
Share your thoughts below on the land of the rising sun prospects.
(Excepts below copied verbatim)
Japan’s economy contracted less than economists estimated in the second quarter as reconstruction work counters the effects of the record March 11 earthquake and a strengthening yen.
Policy makers are beginning to work on a third package for earthquake relief that Chief Cabinet Secretary Yukio Edano says may include measures to help businesses combat the strong yen. Prime Minister Naoto Kan has passed two budgets totaling 6 trillion yen to clear debris and build temporary homes in the disaster-hit northeast.
Most indicators from the quarter started July 1 point to an economic rebound, with industrial production rising for three straight months since plunging in March. Companies are also forecasting they will boost output this month to make up for lost capacity resulting from the natural disaster, and sentiment among merchants exceeded pre-temblor levels.
Machinery orders, a leading indicator for capital spending, also rose more than expected in June, a sign companies will ramp up outlays as they restore their businesses.
Note: This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities.
If I had more time, I would have delved more into international stocks for diversification. Diversification across uncorrelated assets and alternative investments is the key to chasing the alpha and hedge away that beta.
Share your thoughts below on the land of the rising sun prospects.
(Excepts below copied verbatim)
Japan’s economy contracted less than economists estimated in the second quarter as reconstruction work counters the effects of the record March 11 earthquake and a strengthening yen.
Policy makers are beginning to work on a third package for earthquake relief that Chief Cabinet Secretary Yukio Edano says may include measures to help businesses combat the strong yen. Prime Minister Naoto Kan has passed two budgets totaling 6 trillion yen to clear debris and build temporary homes in the disaster-hit northeast.
Most indicators from the quarter started July 1 point to an economic rebound, with industrial production rising for three straight months since plunging in March. Companies are also forecasting they will boost output this month to make up for lost capacity resulting from the natural disaster, and sentiment among merchants exceeded pre-temblor levels.
Machinery orders, a leading indicator for capital spending, also rose more than expected in June, a sign companies will ramp up outlays as they restore their businesses.
Note: This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities.
