Now looks like the time to buy in Tokyo
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Now looks like the time to buy in Tokyo
The sharp sell-off in the Tokyo stock market after the Kobe earthquake was enough to ruin Nick Leeson's arbitrage and options trading strategy in Singapore and bring down Barings. Hundreds of other investors have had their fingers burnt by buying in too early to the Japanese market, hoping for the prolonged recovery that many expect but nobody has yet seen. The Nikkei is down by more than 20 per cent this year.
It is in just such circumstances that smart investors expect to make money. The argument on fundamentals still looks ropey. Everyone is worried about the banks. But this is one of those occasions when technical analysis can provide a useful contra-indicator. The charts that Robin Griffiths uses at James Capel tell him that the turn in the Tokyo market is imminent. Both the banks and the utilities look good value, and the best way to gain a geared exposure to the market's rise, he says, is to buy warrants in Nomura. At the bottom of markets, says Mr Griffiths, there is nobody more bearish than stockbrokers. A good time to buy is when the brokers think their jobs are on the line. That time is now.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments