Why Japanese shares are significantly undervalued?
I intuitively think that Japanese shares are significantly undervalued.
Why?
There are a lot of talks about US IT companies’ superiority, such as Google, Apple, Amazon, Facebook, etc.
AI, IoT, Fintech, etc.
These companies are compared with brains.
Japanese companies are slow and behind in terms of innovative IT.
But come to think of human being.
Of course, brain is important.
But brain does not work without body, hand and foot.
Japanese companies are not as shiny as US IT companies but have solid feet.
At the end of the day, brain and feet work together.
Economics teaches the law of comparative advantage.
Everybody wants to become brain.
But feet are as important as brains.
Such thoughts happen to come into my mind, thinking about equity markets.
Kota Nakako
July 14, 2018
* Please note the above is intuitive thought and not intending to induce investments.
