Servicing the country's debt may become more difficult

JAPAN

A major positive for Japan and its companies are the fast-growing markets of Asia.

Over 50% of its exports head for Asia and China, with the latter country replacing the US as the country’s largest export market. Another plus is the outsourcing of low-tech production to these lower-cost countries, while concentrating on higher value-added activities at home. With economic power moving East, as the West takes time to sort out its debt-related problems, continuing growth in the Asian region can only continue to benefit Japan. Japan’s stock market is cheap when looking at price-to-book valuations. There are many companies that trade on a ratio of less than one. Value inve...