The combination of a debt-rating downgrade by Moody's and support of the yen by the Bank of Japan have presented us with what many regard as a buying opportunity. The main Tokyo index is below 9,000 and the yen around 77 to the dollar. If both quantities appreciate, a non-Japanese investor will obviously be gaining on two fronts.
Japan's equity market and the yen both dipped after the economic worries resulting from the recent earthquake. The yen's fall was exacerbated by the antics of world-wide central bankers, always eager to jump at any opportunity to establish their ineptitude. Should you hold or increase your investments in Japan?
The Japanese yen has long been one of the stars of the Fractal Investor show, though only recently has it started to shine brightly. Against the pound it has almost doubled (partly because that item has been sickly against virtually everything). It has also done well against more sensible currencies (e.g the US dollar... sensible? Well, I do have a vivid imagination).