For being the second largest economy in the world, our Asia Stock Alert portfolio has been very light with Japanese holdings (Nintendo and
Komatsu).
The reason is simple: Japan has been mired in a deflationary spiral.
The latest government stats about Japanese household spending confirm the same. The average Japanese household spent
1.6% less in March of 2008 than it did during the same period last year.
Japan will become a screaming bargain at some point but not until its economy turns
around.
