Your SlideShare is downloading. ×
Investment Notes on Japan
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Investment Notes on Japan

244

Published on

Brief thoughts on the economic consequences of the Japanese earthquake and tsunami.

Brief thoughts on the economic consequences of the Japanese earthquake and tsunami.

Published in: Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
244
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Intelligent Investments, Unbiased Advice Investment notes on JapanOur thoughts and prayers are with the people of Japan as they continue dealing with the earthquake andtsunami after effects.The Tōhoku earthquake and tsunami caused significant destruction in Northern Japan while the on-going nuclear crisis threatens wide environmental contamination. Because the news situation is fluid,we’ve restricted our comments to longer-term observations and how it may affect the global economy.1. U.S. Treasury Yields IncreaseBecause of the 2008 financial crisis, treasury yields are historically low. With Japan being pushed in tothe global debt market to refinance rebuilding, upward pressure on treasury yields will increase.2. Reduced Reactor ElectricityNearly 12% of Japan’s electrical capacity is offline. Worse is that 6-9% is not expected to return once thenuclear crisis is over. It will take years to restore capacity to pre-quake levels. Electricity availability willdirectly affect manufacturing capacity.3. Diminished Manufacturing CapacityJapan is a tier 1 manufacturer of automobiles, semi-conductors and electronics which can’t be quicklyreplaced elsewhere. This supply interruption will certainly affect Japanese companies along with globalfirms.Japan will overcome the challenges it faces and emerge from this crisis. Its central bank has pumped700 billion dollars worth of liquidity into the market over the past week to head off any concern overfinancial stability. The resilience and work ethic of the Japanese people will bolster their nation as oncethey begin the rebuilding process.Keep a steady hand on the till and don’t let today’s market fear drive your investing behavior.Visit Direct Relief If you would like to make a donation to Japan. Sources: Reuters, Bloomberg, Google Fiance, Fidelity, TD Ameritrade © Wesban Financial Consultants, P.C. www.wesban.com Eric@wesban.com 205.995.7778

×