Saturday, August 29, 2009

Are we more like Japan than we think?

A recent Bloomberg article shows us where we might be in relation to Japan's Nikkei history in chart form. If the analysis proves right, this next year could be one that is full of positive surprises to many. I'm not sure I agree with the thesis behind the article, but I have been beginning reviewing month end data that continues to show that our economy is improving.No matter how the short run looks for the market, we don't want anything to do the dramatic decline that will follow if the chart is predictive. As we've discussed previously, deflation is really bad for ALL assets. Although you may have growth in some years, the clutches of deflation are difficult to escape.At the top left of the Bloomberg story you will see a tab that says "GRAPHIC", this is the chart.



At the top left of the Bloomberg story you will see a tab that says "GRAPHIC", this is the chart.



http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aKzgH4hvhh.g