logo
  Join        Login             Stock Quote

Investing In Greek And Japanese Multinational Companies

 March 08, 2012 01:27 PM
 


Economic conditions in Greece and Japan have scared away many investors, leading to some promising contrarian value plays.

You'd think that I would have a pretty complete understanding of Japan's stock market…

After all, I studied in Tokyo for a year as an exchange student, went on to study the Japanese language for a year at Harvard, and then went back to Tokyo as a graduate research fellow at Keio University's School of Commerce. My first two jobs in banking and institutional sales were also centered on Japan.

Still, it puzzles me why Japan's economy and leading high-quality global stocks have been in a funk for more than two decades.

Treading water would be a polite way to put it…

Japan Lost Its Mojo

[Related -Toyota Motor Corp (ADR) (TM): This 'Hated' Auto Stock Could Double -- Here's Why]

Since Japan's banking crisis and real estate bubble burst in 1989-1990, its economy has barely grown and its market is trading at only 25% of its peak.

Japan has clearly lost its mojo, and investors are tired of trying to guess when Japan will get it back. Many have simply given up on Japanese stocks altogether.

This seems odd to me, since, as I've written many times, where a company is based isn't very important. On the other hand, where a company gets its revenue and profits is most important.

Take Japan's major companies, such as Sony (NYSE: SNE), Toyota (NYSE: TM) and Canon (NYSE: CAJ). These powerhouses get the vast majority of their revenue from outside of Japan. The same goes for Siemens (NYSE: SI) or BMW (OTC: BAMXY.PK) of Germany.


Next Page >>12
iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageFord Motor Company (F) Q2 Earnings Preview: Light on the Top Line?

Ford Motor Company (NYSE:F) will release its preliminary second quarter 2014 results at 6:30 a.m. EDT read on...

article imageTripadvisor Inc. (TRIP) Q2 Earnings Preview: On Target Enough?

Tripadvisor Inc. (NASDAQ:TRIP) will release its second quarter financial results after market close on read on...

article imageFacebook Inc. (FB) Q2 Earnings Preview: Scoring Big on the World Cup

Facebook Inc. (NASDAQ:FB) will post its second-quarter 2014 financial results after the market close on read on...

article imageThe Boeing Company (BA) Q2 Earnings Preview: Durable Earnings Beater

The Boeing Company (NYSE:BA) will publish its second-quarter financial results before the open of the read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.