News Formal

The great sell-off and why the Japanese market trades like a penny stock

  • 📰 FT
  • ⏱ Reading Time:
  • 22 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 12%
  • Publisher: 51%

Sverige Nyheter Nyheter

Sverige Senaste nytt,Sverige Rubriker

Investors have to understand that ‘normalisation’ after the ‘lost’ decades is going to be painful

On the first full day of trading after the great Tohoku quake of 2011, recalls a browbeaten fund manager, the office was shuddering with aftershocks. The world’s largest nuclear plant, in Fukushima, was in meltdown and an explosion had blown its roof off. There was talk of evacuating Tokyo. Japanese stocks closed that day 6 per cent lower.

The cautious one will be that this past week has exposed the true face of an economy and a stock market that remains, in spite of some genuinely bright spots and well-conceived cosmetic efforts, quite ugly. Zombie companies were allowed to live too long. Improvements in governance, capital efficiency, diversity and professionalisation of management have come too late and too sparsely. Capital has been miserably misallocated.

 

Tack för din kommentar. Din kommentar kommer att publiceras efter att ha granskats.
Vi har sammanfattat den här nyheten så att du kan läsa den snabbt. Om du är intresserad av nyheterna kan du läsa hela texten här. Läs mer:

 /  🏆 113. in SE

Sverige Senaste nytt, Sverige Rubriker

Similar News:Du kan också läsa nyheter som liknar den här som vi har samlat in från andra nyhetskällor.

Japanese stocks fall as investors fear effects of stronger yenBank of Japan’s interest rate increase catches Tokyo market by surprise
Källa: FT - 🏆 113. / 51 Läs mer »

Wall Street stages partial rebound after Japanese stocks surgeTokyo equities jump 9% following Monday’s global rout but US and European recoveries were more muted
Källa: ftenergy - 🏆 47. / 63 Läs mer »