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March 23, 2012 at 08:43 AM
Two decades of stagnant growth, crushing debt, natural disasters and nuclear fallout—Japan has had it rough lately. But it’s turning a corner, John Arnhold, First Eagle Investment Management’s chairman and CIO recently told AdvisorOne.
“If you look at Japan, it’s a market and economy that has been a relatively uninteresting place to be an investor,” Arnhold said. “But because the macro picture is less than desirable there has been very little money flowing into Japanese equities. But there are world-class businesses in Japan that actually operate around the world and have traded at very reasonable prices. We’re taking advantage of those opportunities.”
Great news, right? Wrong. Enter legendary bear (and AdvisorOne contributor) Gary Shilling to rain on the parade.
Japan is still a “slow-motion train wreck,” Shilling, president of A. Gary Shilling & Co., told The Daily Ticker on Friday, and the speed of the train wreck is now accelerating.
The Japanese yen recently began to weaken sharply, and Shilling told the website he believed this was related to Japan’s trade balance, which recently slipped into deficit.
