Why is the Japanese market so underappreciated?
If you tell investors, local or foreign, that common stocks are the long-term investment of choice, it does not apply to Japanese stocks over last 20 years. Now they are between 70-75% below where it was 20 years ago. So local investors, foreign investors, institutions and individuals are thoroughly disgusted. They’ve been burned so many times over the past 20 years. The Tokyo stock market suffers from what I believe is undue neglect. Then there is the issue of demographics, with the population aging and declining; 10-15 years down the road there will be nobody left in Japan, people say. If the population declines too much in future the number of old people in Japan will be a burden on young and middle aged people that will be horrific. I believe the Japanese will accept greater immigration. As you know, they see themselves as a special people, and are not particularly fond of gaijin. But better to increase immigration than have a gigantic tax burden. Are Japanese firms well capitalize
