“Interesting suggestion on Japanese stocks. You recently mentioned a Korean fund that was not trading at a large premium. Is there such a Japanese fund? Can you buy the Nikkei like you can buy “spyders” here? Also, Japanese P-E ratios were sky high in the past, as you pointed out before the dive. Are they reasonable now by US standards?” – Dan Stone
I’m not sure Japanese stocks have much e these days to divide the p by.
EWJ is the symbol of the Japan WEBS (single-country index funds), but they trade with no discount.
Some believe that active management is worth paying for in Japan because a good manager will shun the stocks that are artificially propped up by face-saving old-boy-network cartel arrangements.
TKIOY is the symbol for a Japanese insurance company with a portfolio of stocks that are, theoretically, worth more in the market than TKIOY is. I haven’t researched it well enough to know whether much of that portfolio is the propped-up kind.
I don’t think it would be unwise to make a small long-term bet on Japan (and Korea and Thailand and maybe Malaysia and Russia and, well, lots of other places as well). And maybe average down a year or two from now in case things in Japan get decidedly worse. (One good sign: If you make bets like these, most people will say you’re nuts.)
Quote of the Day
The people who sustain the worst losses are usually the ones who overreach. And it's not necessary: steady, moderate gains will get you where you want to go.~John Train
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