Analyst: Japan's a Good Long-Term Buy

Thursday, 4 Jan 2007 | 2:23 PM ET

Japan’s Nikkei Index has had its longest bull run since 1989, ending 2006 up 7%. Unemployment in the country is at an eight-year low, and despite a possible rate hike in the spring Japan is reclaiming its leadership position in the global economy. But is it too late for investors to get a piece of this growing economy? President of Matthews Asian Funds Mark Headley says no.

Japan's Bull Run
A look at whether Japan's bull market can continue its run in '07, with Mark Headley, Matthews Asian Funds President, and CNBC's Erin Burnett.

“I think what you have in Japan is a very long-term, profound restructuring story,” Headley says, “coming out of the morass of the ‘90s and all the disfunction of the financial system and a property market that fell 14 years in a row.”

It’s not a “mad growth environment like you see in China and India these days,” the analyst says. Everything happening in Japan is moving a slow pace, which gives investors time to build a position and look for good companies.

Headley is more worried about bureaucrats than rising interest rates. In fact, a gradual climb in rates is a sign of a healthy economy, he says. But if the same stifling mentality that has ruled the troubled Japanese markets over these past years continues, that could have a serious negative impact on the economy. Headley believes that the continued deregulation of the market is the best strategy for growth in Japan.


  • Showtimes

    United States
    Monday - Friday 1:00P ET
    Monday - Friday 18:00 CET
    Asia Pacific
    Tuesday - Saturday 01:00 SIN/HK
    Tuesday - Saturday 03:00 AEST
  • Sue Herera is a founding member of CNBC, helping to launch the network in 1989. She is co-anchor of "Power Lunch."

  • Tyler Mathisen co-anchors CNBC's "Power Lunch." Mathisen also co-anchors "Nightly Business Report produced by CNBC."

Power Pitch

Kenny Polcari