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American in Japan says

One thing for sure. The Nikkei was one of the worst long-term investments you could have made in 1989.

The Nikkei 225 Hit its all-time of ¥38,957.00 on December 29th, 1989. If you had bought then, your investment would *still* be down over 75% over 21 years later! Any lesson to be learned here?

What most investors fail to realize is that the lifetime of a bear market rarely lasts more than 20 years. Getting in on Japan, you are buying low. 10 years from now, it will be looked upon as a no brainer.

American in Japan says

The Nikkei 225 Hit its all-time of ¥38,957.00 on December 29th, 1989. If you had bought then, your investment would *still* be down over 75% over 21 years later! Any lesson to be learned here?

One lesson is that it's probably a bad idea to buy an index whose P/E ratio is nearly 80.

American in Japan says

They are wasteful with the big neon signs (even though I like them). Even worse, many offices usually waste energy via the A/C. Up to 78 F in the winter and down to 72 F in the summer in many cases (should be the opposite). Home insulation is poor or non-existant. One bright note is that Japan is on the cutting edge of light emitting diode developlment and use (low energy).

Home insulation is poor to non-existant in Japan? How did that happen?

I think a lot of people are going to miss the bottom fishing opportunity in Japan. Beark market bottoms typically come when everyone least expects it. I called for the bottom a few months ago. Obviously, the Earthquake may have shifted expectations but I do believe a real bottom is somewhere in the near future.

for us the difficulty in investing into Japanese markets comes from the fact that we know too little about Japanese companies. TM is the only one we know specifically, which is why we invested into their stock. But anything else out there would be basically a gamble for us.

Maybe AmericanInJapan can mention which products in Japan are flying off the shelves.

@ChrisLA

LoL!

Potassium iodine, mineral water (and a few weeks ago AA batteries).

@thunderlips11

Agreed.

@zzyzzx

Insulation- electricity costs here are among the world's highest (even before 3-11). I chalk it up to the (often) illogical group think here.

I understand better now with Toyota. It seems that some of the parts are produced only in Japan, so this factor is the "rate determinig step" to have more cars completed in the US assembly plants.

Anyway, I rarely buy into individual companies anymore, but rather (fixed) indexes. The problem for me is I realized that not only can individual companies fail the "regular way" (bad business model, etc.) but sometimes even with a successful company, the president can take the money ut of the company and run.

Good reading here:

http://www.telegraph.co.uk/finance/markets/8383373/Japan-earthquake-The-companies-most-affected-by-the-disaster.html#

I still hold EWJ, but I have reduced my position.

Has anyone bought EWJ since the disaster?

Another view:

http://seekingalpha.com/article/262184-japan-is-not-a-bargain?source=yahoo

I'm coming to conclusion that it's just better to buy individual stocks, seems a lot cheaper per trade.

ETFs can be bought like individual company stocks. (unless I am missing something here...)

American in Japan says

ETFs can be bought like individual company stocks. (unless I am missing something here…)

sorry, I wasn't specific. I meant cheaper than mutual funds as cost per trade, etc...

American in Japan says

@ChrisLA

LoL!

Potassium iodine, mineral water (and a few weeks ago AA batteries).

You are right, I'm trying bit too early. KI is not exactly a great long term investment.

>sorry, I wasn’t specific. I meant cheaper than mutual funds as cost per trade, etc…

Mutual funds generally have higher "management fees" then fixed annuities or ETFs,
I could be wrong if I say all mutual funds, but research the costs.

EWJ climbing up again the last 4 days…

For the record, in the past month, Jim Rogers, Marc Faber, and James Grant have all suggested there is huge value to be had in Japanese equities.

A graph of the Nikkei 225 (in yen). It is still well below its 1989 high (around 1985 levels):

I'm not sure which companies and sectors to invest into here. outside of TM I'm pretty much in the dark.

There are ETFs in which you can invest in the market as a whole…
EWJ

Lol! I know what you mean!

Interesting news this evening...

http://blogs.barrons.com/focusonfunds/2011/07/05/etf-investors-pulling-away-from-china-jumping-into-brazil-japan/?mod=yahoobarrons

EWJ is at 10.60 now.