Earnings have yet to catch up to the shares, which gained on anticipation that the economy will improve. That will keep a lid on shares in the short term.
Once interest rates start to rise, the present value of developers' future earnings will start to decrease.
We're seeing more signs of economic strength, so the recent drop provides a chance to buy.
Foreign investors are buying Japan with confidence. With economic recovery in sight, the investment environment is quite good.
Real estate stocks have had a good run, but once interest rates start to rise, the present value of developers' future earnings will start decrease. Shipping lines are in for a tough time.
Market sentiment is a bit negative now, but I'm a long- term bull when it comes to Japanese stocks. Getting away from zero rates will enable monetary policy to return to normal and shows the economy is finally back on track.
A slowdown in the housing market suggests possible declines in consumption. That would be a negative factor for Japanese exporters.
The fear is that foreigners have stopped buying. The yen's weakness has been a catalyst for people to get out of banks and into exporters.
No matter when the BOJ scraps quantitative easing, the move should be considered positive because that shows the central bank sees Japan's economy as solid enough to bear that.
Basically any Japanese stocks can be bought. Strong output is having a ripple effect on other things such as wages and consumption.
