"The Bank of Japan is under terrific pressure to respond to the deflationary pressures within the system, and we believe it is only a question of time before the current regime in the Bank of
Japan is either removed, or of its own volition provides a stimulus beyond simply currency intervention to the embattled Japanese consumer. If this happens in decisive style, we think the yen will be forced sharply lower, and the stock market sharply higher. This is truly one of the few markets which is cheap in almost any environment. We feel like the schoolboy with sixpence in his hand, and finding that the sweet shop has knocked 50% off all their stock. Which is it to be? The rum butterballs of
financials, or the sherbert dip of
exporters? This has the capacity to be a really exciting market."
Jonathan Ruffer
"David Marcus, chief investment officer of Evermore Global Value, sees opportunities in efforts of European companies to cut costs and restructure...
Marcus likes Siemens, the German industrial conglomerate that provides technology for factory automation and wind power. The company has been reducing costs by cutting deals with unions and expanding production outside
Europe. Marcus figures the company sells at a 40% discount to its fair value.
Marcus also owns RHJ International, a Brussels-based holding company that's buying up troubled
financial companies around Europe. The company recently bought Kleinwort Benson, an old-line U.K. private bank.
"They are buying things at unbelievably low prices," Marcus says..."
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