Thoughts About Investing In The Japanese Stock Market

[laughing_goat]

This is less about financing a house more about providing a little extra for my retirement.

I have decided that even though I will keep my M & G UK index tracker ISA, I will not be investing any further money in this new tax year. Instead I was thinking about opening another stocks and shares ISA, maybe tracking the Nikkei?

Does anyone have any thoughts?

Edited April 5, 2006 by laughing_goat

[BoredTrainBuilder]

This is less about financing a house more about providing a little extra for my retirement.

I have decided that even though I will keep my M & G UK index tracker ISA, I will not be investing any further money in this new tax year. Instead I was thinking about opening another stocks and shares ISA, maybe tracking the Nikkei?

Does anyone have any thoughts?

You can buy shares in a fund such as Baillie Gifford (BGFD) listed on the stock market which is essentially a tracker, using (say) etrade or squaregain to keep trading costs to a minimum. There are others, look for low management costs. It has done very well for me over the last 18 months and should further benefit if yen starts to appreciate.

Better still (if saving for your retirement) open a SIPP (again using etrade or squaregain) and the government will refund your tax and there's no 7k annual limit. From tomorrow you can put in up to your annual earnings.

Edited April 5, 2006 by BoredTrainBuilder

[laughing_goat]

BoredTrainBuilder,

Thanks, I never considered a SIPP, definately worth a thought.

LG

[oracle]

I'm invested in japan at present....about 30% of total holdings.

technically it is the best looking of the major indices.

the risk is not actually the slowdown in the US,the jap domestic economy is starting to get a bit of traction.

Bird Flu is going to be more of a problem for asia as a whole.....the region is poor with lots of family-held livestock and less access to preventative drugs than we in the west have.

japan won't be immune to this....

...BUT,the downside is only short term.....it will be the old and infirm who cork it in the main,so with the oldest population on earth japan's pension problem will be sorted out.

.....I would still say go for it.....it's a lot less risky than a debt-laden country on the brink of a housing crash.....they had theres a few years back.

[laughing_goat]

I'm invested in japan at present....about 30% of total holdings.

technically it is the best looking of the major indices.

the risk is not actually the slowdown in the US,the jap domestic economy is starting to get a bit of traction.

Bird Flu is going to be more of a problem for asia as a whole.....the region is poor with lots of family-held livestock and less access to preventative drugs than we in the west have.

japan won't be immune to this....

...BUT,the downside is only short term.....it will be the old and infirm who cork it in the main,so with the oldest population on earth japan's pension problem will be sorted out.

.....I would still say go for it.....it's a lot less risky than a debt-laden country on the brink of a housing crash.....they had theres a few years back.

Thanks Oracle,

I'm no financial wiz and am on a steep learning curve here so your advise is greatly appreciated.

I think I will go for it as it seems like the best option at this time (would have been better a year ago - darn!). I'm looking to diversify my ISA investments over the next few years and invest in the one which is the best bet each year. At the moment the UK ISA shares are too expensive for my liking, the FTSE may well rise, but I'd rather let what is in there appreciate and not put more money in for a few years.

Luckily (or unluckily, depending on how you view it), I've got about another 30 odd year until I retire, so there's plenty of time for me gather a few funds/trackers.

Thanks again for the advise much appreciated.

[tune2001]

Japan is pretty solid at the mo. I bought a L&G Japan Tracker last November and it's over just over 16% already. The P/E ratio is rather high (over 20!) but you have to believe that the earnings are going to catch up.

I know losing money in South America is a hackneyed concept, but have you considered Brazil? I'm loving their alternative fuel/cheap personal jets stuff. Maybe you could stick half your money in Japan and half in an emerging markets fund?

[Mr_Sminty]

ETFs, Barclays ishares (IJPN) have a charge of less than 1%, no stamp duty and are no purchase dealing costs on squaregain. They are basically trackers and payout underlying dividends, I have some! In a share ISA you could theoretically move between different markets buy buying and selling say the UK ishare or the JPN ishare depending on your outlook with no stamp duty and commission to pay (commission payable on selling I thnk) so they are a cheap way to be a bit more active.

[oracle]

Japan is pretty solid at the mo. I bought a L&G Japan Tracker last November and it's over just over 16% already. The P/E ratio is rather high (over 20!) but you have to believe that the earnings are going to catch up.

I know losing money in South America is a hackneyed concept, but have you considered Brazil? I'm loving their alternative fuel/cheap personal jets stuff. Maybe you could stick half your money in Japan and half in an emerging markets fund?

I agree,latin america looks red-hot!!!!!!

...you just know mcdonalds are going to do the double on all that slash-and-burn territory they have....instead of burning they'll be fermenting!!!......bio-waste ethanol from the big mac......how green is that(or how much of a marketing gimmick!!!)

I'm lovin it!!!

[Guest muttley]

I reckon Japan may prove to be a bit volatile for the next couple of years.High reward but high risk too.

The rest of Asia looks good to me.Does anyone have any thoughts on India?

I bought a German Growth Unit Trust about 6 months ago and it's +24% so far.

[Realistbear]

I'm invested in japan at present....about 30% of total holdings.

technically it is the best looking of the major indices.

the risk is not actually the slowdown in the US,the jap domestic economy is starting to get a bit of traction.

Bird Flu is going to be more of a problem for asia as a whole.....the region is poor with lots of family-held livestock and less access to preventative drugs than we in the west have.

japan won't be immune to this....

...BUT,the downside is only short term.....it will be the old and infirm who cork it in the main,so with the oldest population on earth japan's pension problem will be sorted out.

.....I would still say go for it.....it's a lot less risky than a debt-laden country on the brink of a housing crash.....they had theres a few years back.

Apparently, it is not the old and infirm who got greased by Bird Flu in the 1918 bout but the 20-30 somethings. Due to the immune system turning on itself--a phenomena less likely in older people. Part of the reason they called the Great War off--too many young people being clipped by the flu and not so many by bulletts.

I have sunk some STR funds into Fidelity's Japan Small Companies Fund. It tanked awhile back but has been roaring ahead ever since. The Nikkei hit 40,000 in 1990 so it has a way to go (currently just over 17,000).

Edited April 8, 2006 by Realistbear

[zag2me]

I've made alot of money out of emerging markets, brazil mainly. Looking at investing in japan, but how will the expected interest rate rises over there effect the economy?

[Scipio_Africanus]

Is Latin America a safe place to invest?

[Columbo]

Is there a beginners page for trading on LSE ?? How does a necomer learn to buy shares?

[laughing_goat]

Global markets look set for a dump, thanks to rising rates

(If you wanted a specific reaction from me, You should have posted on GEI, I would have seen it sooner)

Hi Dr Bubb,

Thanks for the reply. I wasn't too worried about how soon you saw the post and I did want some other opinions, I have to admit that I'm not much of a forum wiz and have not heard of the GEI forum before (but I dod now). I've been reading quite a few of your posts and the www.housepricecycle.com site and have found you a good source of info (if only I'd listened about the gold eh?), so I was keen to get your opinion.

I haven't invested in anything yet, essentially I have 11 1/2 months to do so (in theory). I have a cash ISA which I've already filled up for this tax year and a UK tracker ISA which I don't plan to add to this tax year.

I am quite interested in the immerging markets like Brazil, India and China, but am concerned by the speed of growth, the Nikkei did grow hugely last year (as with most markets) and the Japanese are soon to raise IR's (well they can't go downwards), I fear I've left things a bit late.

Thanks LG

[oracle]

Global markets look set for a dump, thanks to rising rates

(If you wanted a specific reaction from me, You should have posted on GEI, I would have seen it sooner)

I don't disagree Bubb.

but while japan are still giving away free money I'll ride it out.

...I wouldn't be surprised to see NIKKEI hit 20k but slide back to 16k or so.....for the time being I'll keep my bet....when it hits 19/20k I'll take a bit off the table.

one of the good things about hedging with gold is as money becomes a scarcer commodity,those with tangible assets benefit.

someone else pointed out we are now in an era of "stuff"....that's as good an anaolgy as any.

paper has had its day,hard assets are where it's at for the next generation.

Edited April 9, 2006 by oracle

[bert]

one of the good things about hedging with gold is as money becomes a scarcer commodity,those with tangible assets benefit.

someone else pointed out we are now in an era of "stuff"....that's as good an anaolgy as any.

paper has had its day,hard assets are where it's at for the next generation.

I better buy a property then! I don't understand how to buy gold and I can't do much with it when I've bought it. What other tangible assets are there?

[urban_hymn]

I better buy a property then! I don't understand how to buy gold and I can't do much with it when I've bought it. What other tangible assets are there?

Mmmm... music to my ears! So many people don't "get" gold and of the ones that do so few know the various ways to play their hunch.

Gold in a bubble? Nowhere near, hardly started, we're still on the starting blocks really.

Mega gains are still to come for gold investors I'm sure. However I think there may be one more "*hit or bust" assault on the Gold price still to come then it's afterburners on!

Edited April 16, 2006 by urban_hymn