It's so very tempting to buy Japanese stocks. They're still down 60% from their 1989 peak and some well-respected strategists, including Morgan Stanley's Barton Biggs, are bullish. The Japanese government is finally pushing the monetary pedal to the metal. Convinced that more tax cuts and spending won't end the country's deflationary depression, it has decided to hand out free yen to stimulate growth. Bank of Japan Governor Masaru Hayami has said, "If a zero [interest] rate is appropriate, the rate can be zero." And the government is dispensing money with a free hand (see p. 55).
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