Japanese stocks, Asian real estate and commodities
These are the picks of the day according to an article about what international investor Marc Faber is looking at. Despite the article’s bullish call on commodities, I know that Faber is on the record as saying that oil is due for a correction soon. And in Barron’s he mentioned that steel demand could slow if China is affected by a global slowdown.
So, buyer beware. I wouldn’t trust commodities to continue up, at least over the near term. One can’t trust what one reads.
That said, the most interesting comment in this short blurb was:
“For Japan, inflation is favorable,” Faber said, because it “will bring cash out of the mattress and into equities and real estate.”
For a country in the throes of deflation for a decade, a little inflation might be the fillup they need.
Marc Faber Favors Commodities as Inflation Quickens, Bloomberg News, 24 Jun 2008
Troubled Waters, Barron’s, 16 Jun 2008
Picture du Jour: Sun Rising Over Japanese Stocks, Prieur du Plessis, Safe Haven, 24 Jun 2008