Lance

Outlook for Japanese Stocks: A Rising Sun

I should get excited about Japanese shares in general because DoCoMo is buying a majority stake in a business that they seem to have absolutely little or no experience in? A business seemingly well outside the boundaries of its traditional business? A business that seems to have done well last year marketing a workout DVD?

While it does suggest the DoCoMo had some chump change (~300 million dollars) burning a hole it its pocket, it also suggests that DoCoMo believes that its own business is not where it should be investing money right now. Generally, to me, this is not a "The Sun Is Rising" kind of signal.

I think you need to pay more attention to employment in Japan. Right now, pretty much no one feels secure about his or her job. Until that changes, the economy is not going to show much life.

And Seven & I Holdings is not really what I would call an exporter, either.

Market's Irrational Exuberance Hikes Up Japanese ADRs Despite Export Plunge

Got caught short, did you? (^_-)