Japan

Today, world equity markets are once again tumbling on concerns of a global and severe recession. However, assuming that this is not the end of the world and keeping in mind that the U.S. and Europe have yet to digest the full economic consequences of this crisis...is it time to overweight Japan? I believe it is.

After its own financial bubble burst in the late 80's, Japanese markets have failed to recover ever since. Now it's time to turn around and to assume leadership once again.

Here are some statistics on the current Japanese financial infrastructure (source: Pocket World in Figures, The Economist, 2009 edition):

Current account surplus: $170 billion or 3,9% of GDP

Level of Reserves: $895 billion (covering 15 months of imports)

Gold Reserves: $16 billion or 0,4% of GDP

Household savings rate: 3,2%