Wednesday, July 15, 2009
S&P versus the Nikkei
I told many of my friends what happeded in Japan in 1990 and told them how the Nikkei was down over 70%. Now it's almost down 80% over 20 years. I expect the S&P 500 to do the same. Japan had a huge real estate and credit bubble that popped just like we are going through here in the US. The Japanese had a higher savings rate and also didn't have huge deficits. The US saves barely 1% and we have huge deficits which aren't ending anytime soon. I can't understand how we would expect different results.