Although the trigger of this recent trend down in the markets feels like it stemmed from the Japanese earthquake, it appeared to start with the civil unrest in Egypt.
The Nikkei today is staging a comeback – up about 6% after yesterday’s panic volatility that took the index a further 20% down before bouncing back. International traders presumably are mining their selections of Japanese equities. I will provide a list of directly (from the NYSE and NASDAQ, although Interactive Brokers clients have direct access to Japanese equity markets):
| Company Name | Symbol | Sector |
| ADVANTEST CORP | ATE | Electronic Technology |
| CANON INC | CAJ | Electronic Technology |
| HITACHI LTD | HIT | Producer Manufacturing |
| HONDA MOTOR CO LTD | HMC | Consumer Durables |
| INTERNET INITIATIVE JAPAN INC | IIJI | Technology Services |
| KONAMI CORP | KNM | Consumer Durables |
| KUBOTA CORP | KUB | Producer Manufacturing |
| KYOCERA CORP | KYO | Electronic Technology |
| MAKITA CORP | MKTAY | Consumer Durables |
| MITSUBISHI UFJ FINANCIAL GROUP INC | MTU | Finance |
| MITSUI & CO LTD | MITSY | Distribution Services |
| MIZUHO FINANCIAL GROUP INC | MFG | Finance |
| NIDEC CORP | NJ | Producer Manufacturing |
| NIPPON TELEGRAPH & TELEPHONE CORP | NTT | Communications |
| NOMURA HOLDINGS INC | NMR | Finance |
| NTT DOCOMO INC | DCM | Communications |
| ORIX CORP | IX | Finance |
| PANASONIC CORP | PC | Electronic Technology |
| SONY CORP | SNE | Consumer Durables |
| SUMITOMO MITSUI FINANCIAL GROUP INC | SMFG | Finance |
| TOYOTA MOTOR CORP | TM | Consumer Durables |
| WACOAL HOLDINGS CORP | WACLY | Consumer Non-Durables |
Very quickly mining the selections above (which generally represent global large-capitalized Japanese companies), Kyocera appears to have decent value, with similar valuations to the old-school technology index.
However, investors should be cautioned that they are not nearly out of the woods yet – the civil disruptions in Northern Africa and the Japanese earthquake could be the trigger to a prolonged downslide in the markets. It is very difficult to determine whether now, a moment of relative uncertainty, is a good time to jump in, or whether the markets will reward the patient.
I’m choosing to be patient. My portfolio has been extremely defensive and I continue to wait with a large amount of cash and cash-like instruments that are uncorrelated to the woes of the equity marketplace.
Some might argue that the damage has all been priced in – my guess is that there will be damage to the market beyond the immediate economic impacts of geopolitical uncertainty and natural disasters that we have seen over the past month.