Why writing off Japanese equities is 'unwise'

When we consider his recent comments bemoaning US competitiveness, this scenario could have occurred yesterday.  However, the deal in question - the Plaza Accord - was signed in 1985.  That accord supercharged demand for Japanese assets, triggering a bubble that would have lasting consequences when it eventually burst. The 'icing on the cake' in Japan The collapse of this bubble was the beginning of a long-term decline in the yen, leading to Japan's 'lost decade', in which the economy stalled and the stockmarket flagged.  While both have recovered from those lows, the repercu...