The press is full of commentary on the meltdown, cooling system repairs, cobbling together power supply lines, the dearth of inventory as certain plants…
But few comment on the long-term view, other than perhaps how long the radiation may be in the ground, the water or plants…
That is why I wanted to share a portion of the interviews of managers by MorningStar:
“A large group of successful fund managers says the sharp decline in Japanese equities over the past week is overdone. by Morningstar Analysts 03-21-11
“The MSCI Japan Index has declined 11.7% this month through March 16. Meanwhile the S&P 500 is down 5.2% and the MSCI EAFE is down 8.5% over the same period.
“Ben Inker, of GMO-run Wells Fargo Advantage Asset Allocation EAAFX, wrote in a note to clients this morning that corporate Japan can bounce back.
“ ‘Given the long duration nature of equities, where the bulk of value comes from the present value of dividends that will be paid 10 or more years in the future, we believe this event is unlikely to have material impact on the long-term fair value of corporate Japan,’ Inker wrote.”
From the excerpt, you can see why holding on and staying the course is again the best advice. In fact, many US stocks are already resurging, as are stock in other countries.
In fact, some managers are buying Japanese stocks because the shares are “oversold”
As I said, there are opportunities in volatility!
On the human side, there are ways to donate to relief efforts, such as: Global Giving
If you have other ideas on donations or questions on any of this, let me know.