For being the second largest economy in the world, our Asia Stock Alert portfolio has been very light with Japanese holdings (Nintendo and Komatsu).
The reason is simple: Japan has been mired in a deflationary spiral.
The latest government stats about Japanese household spending confirm the same. The average Japanese household spent 1.6% less in March of 2008 than it did during the same period last year.
Japan will become a screaming bargain at some point but not until its economy turns around.
Related Posts
- The tight fisted Chinese consumer (12/03/08)
- The disappearing high end consumer (11/20/08)
- Consumer confidence falls off the cliff (12/14/08)
- Machinery orders fall in Japan (09/12/08)
- Japan jobless rate falls to 10 year low (05/02/08)
