J- Links of Interest; Week 09, 2021

Japan's problem? Too much competition by Jesper Koll (Japan Times)

One of my favorite questions as an unashamed Japan optimist is “what is the biggest problem of the Japanese economy?” The answer is simple: Japan suffers from too much competition.

Murakami-backed fund exposes sweet insider deal at Japan Asia Group by Stephen Givens (Nikkei Asia)

Though his quest to gain control of Japan Asia Group -- an obscure Tokyo Stock Exchange-listed company engaged in a hodgepodge of "green" businesses -- still hangs in the balance, activist investor Yoshiaki Murakami deserves our admiration for ferreting out and exposing a bid by management insiders and private equity company Carlyle to take JAG private on the cheap.

Japanese stocks have begun to correct from their "irrational pessimism" by Ryoji Musha (Muscha Research)

The breathtaking surge in stock prices continues. The Nikkei 225 index reached 30,000 yen for the first time in 30 years, since the collapse of the bubble economy. Since the beginning of this year (until February 19), Japanese stocks (Nikkei 225) have risen 8.8%, the highest among developed countries.

Japanese Stocks: The Ultimate Undervalued Investment Opportunity (w/ Andrew McDermott & David Salem) (Real Vision Podcast)

The Interview: Recorded on December 14, 2020. David Salem, managing partner of Windhorse Capital Management, welcomes Andrew McDermott, president of Mission Value Partners, an investment firm that invests almost exclusively in Japanese equities. McDermott argues that Japan is a hidden repository of balance sheet strength and Japan's business leaders seem not to exhibit the same bad habits that have ruined so many previously-great American companies, such as Intel and GE.

JAPANESE EQUITIES: CAN THE ‘COFFIN LID’ BE LIFTED? by Yvan Berthoux

Over the past 6 years, the Yen-US$ exchange and the Japanese equity market (represented here by the Topix) have moved in a reliably inverse manner. The range of movement has been about 50% greater for the Topix than the currency, meaning that typically two-thirds of equity performance (in US$ terms) was cancelled out by the Yen. This neat relationship broke down earlier this year (figure 1), allowing investors equity gains that were unhindered by currency losses.

Nikkei 30,000: Why it matters by Peter Tasker

So it’s finally happened. Japan’s Nikkei 225 index of stock prices has topped the 30,000 level for the first time in 30 years. The most appropriate way to celebrate this event would be by opening a bottle of 30-year old Hibiki whiskey.