Everyone knows that the Nikkei index went down to 11% due to the sequential disasters that hit Japan over the weekend and on Monday. Many investors would ask, what would happen now to the stock market of Japan? Yes, you can relatively say it has turned out to be dangerous and risky for those who want to carry on buying Japanese shares.
In New York, the Japanese equity funds trading were in rally and investors have attempted to buy the dips, which made it look like, they were not looking at the price. Japan’s iShares MSCI Index fund trading sold 2% below the Monday trading. Hence, the crash discount isn’t putting investors anywhere.
Based on the closing prices from Tuesday’s stock trades, Tokyo’s funds must be lower. Their stock prices may or may not go up the next day, who knows? But at this time, it is still best to get a discount rather than a premium.
If you still insist to buy Tokyo shares at a discount, check on the cost of the fund to be sure that you really have a discount. But be careful, although this crash discount may seem like a buying opportunity, it does tag along a whole load of risks.
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