´´ Peter Tasker on Investing in Japan

Friday, May 10, 2013

Peter Tasker on Investing in Japan

Investing in Japan: Only the 'cockroaches' survive by Hannah Smith

(...)The key to surviving as an investor in these markets was to follow a value strategy (...)

(...) “For the last 20 years I have been living in the largest, most severe bear market ever seen. A real bear market is stocks crashing and staying crashed. A generation is wiped out and does not come back, an entire asset class is discredited. At some point, fundamentals improve, but nothing happens because no-one is there, no-one is watching.”(...)

(...) number of securities industry personnel halved between 1991 and 2003 (...).

(...)55% of household financial assets are held in cash or near cash assets, Japanese pension funds have cut their allocation to domestic equities and the coverage of equities as an asset class (...)

(...) The strategy which has worked the best for investors in the country over this time has been value investing. (...).  

(...)The value concept works because of the margin of safety, and getting more for your money, but you have to be conservative in your valuation criteria.”(...)

(...) several myths about Japan persist, (...)The reality is that Japan has taken its medicine. Companies have been paying a significant real interest rate on their debt - there has been no financial repression,”(...).

 (...)if we are to have a new regime of monetary policy, you can see from where asset allocation is in Japan that to reverse that would be a multi-year process. To get traction in the real economy and move out of deflation would take considerable time.” (...)

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