Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

Have We Seen This Picture Before?

ByThomas J. Feeney
Published 10/08/2014, 12:21 AM
Updated 07/09/2023, 06:31 AM

We lived in mid-town Manhattan in the mid-1980’s when the Japanese were actively buying trophy properties. We could look out our 59th story windows and see several iconic New York landmarks that had recently changed hands. In the same era, Japanese buyers acquired the renowned Pebble Beach golf complex to fulfill the golfing dreams of well-to-do businessmen traveling to this country.

Those old enough to remember may recall that Japan at the time seemed to have developed the new industrial paradigm. Japanese companies dominated the electronics industry. Detroit-made automobiles were considered second-rate compared to their Japanese competitors.

Japan was truly a country with an unlimited future. At the end of the 80’s, the Nikkei index measured the progress of the world’s largest stock market by capitalization. The Nikkei closed the decade at just about 39,000.

After powerful rallies over the past several years, that same Nikkei has recently climbed above 16,000–still down almost 60% from its 39,000 high a quarter century ago. Japan continues its desperate attempt to extricate itself from the deflationary malaise that characterized a significant portion of the most recent 25 years.

Today we read about Chinese buyers picking up the venerable Waldorf Astoria hotel for just short of $2 billion. Although we can no longer look out our windows at the latest trophy acquisition, there is a clear sense of déjà vu. With obvious parallels between Japan and this most recent Asian power and its growth prospects, it’s worth leaving some room for doubt about the inevitability of a coming glorious period of economic domination.

Just saying.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.