Prab Sagoo, associate director at Nasdaq Advisory Services, explains in his weekly commentary how Canadian investors have reacted to recent events on the global economic stage.
Look outside Canada for returns
There’s been some anxiety over the state of the housing market and consumer debt moving higher. But despite this, Canada’s banks were still solid investments last year.
The Bank of Japan is optimistic about the country’s economy, stating today it is “recovering moderately.”
Does this equation make sense to you? Probably not, but it’s what the Japanese are experiencing right now.
The Financial Times reports Japan is set to enter trade negotiations with 11 countries, including the U.S.
Japan’s economy is in weaker shape than most experts think, reports FT.com.
The Japanese trade deficit ballooned in July to 517 billion yen and the country has one of the highest debt loads of any developed country.
Kaifukuroyoku is Japanese for resilience and this word perfectly captures the Japanese people’s ability to overcome hardship and disaster this year. Their ability to make a steady recovery from the Tohoku earthquake and tsunami that hit the nation on March 11 is a case in point.
Where do you start when you list the problems Japan faces? The country is a demographic nightmare; the government changes with the tides; and its economic "lost decade" is now over 20 years old. Still, there is value in Japan, even if the index statistics suggest otherwise.