Cover of MoneyWeek magazine issue no 451

Eureka stocks

4 September 2009 / Issue 451

Profit from medical breakthroughs... PLUS:

  • Why change will be good for Japan
  • How to profit from New York taxis
  • The most disappointing organ in the human body


Why we’re still keen on Japan

I asked James Ferguson, who used to work with me in Japan, if he thought the election results there would make any difference. “Don’t be silly,” he said.

He’s not alone in his pessimism. For most of the world’s investors Japan is now, and is likely to remain, a dead loss. For James, the main worry is not that the new government won’t make things better, but that they might make things worse.

How? By following through on promises to cut government spending when government spending has been the only thing keeping the Japanese economy even slightly above water for the last decade.

I have some sympathy with this view, but I am – unusually for me – a bit more optimistic.

• Read the full editor’s letter here: Why we’re still keen on Japan