Gold News

It Happened in Japan

America won't likely repeat its "Lost Decade". But then again...

financial history may recall that our friends over in Japan have already logged a couple of "lost" decades, reports Eric Fry for The Daily Reckoning.

Japanese workers still punch time clocks every day, but the national economy barely seems to notice. Meanwhile, the Nikkei Index has surrendered 73% of its value during the last twenty years.

Here in the United States, things are a little bit better. We've only lost one decade so far. The S&P 500 Index posted a total return of minus 9% during the first ten years of the new millennium. And that was the "strong" index. The Nasdaq Composite of tech stocks tumbled 40% during the same 10-year span.

Stocks are not exactly synonymous with economic vitality, of course. And we know that US GDP increased during the decade. So maybe the US economy isn't as lost as the stock market suggests. But based on the nearby chart, the economy looks so disoriented that no GPS device on the planet could lead it back to the path of productivity.

In terms of job creation, the last 10 years were a complete bust...

Despite an abysmal 10-years of zero wealth creation and zero job growth, betting on a second consecutive Lost Decade seems like a bad wager, of course.

And yet, it happened in Japan...

"If there's an easier way to Buy Gold, I've yet to find it," says one BullionVault user. Find out why in Ready to Buy  Gold...

Eric J.Fry has been a specialist in international equities since the early 1980s. A professional portfolio manager for more than 10 years, he wrote the first comprehensive guide to American Depositary Receipts, International Investing with ADRs. Today he reports on Wall Street from California for the renowned Daily Reckoning email service.

See full archive of Eric Fry articles

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

Follow Us

Facebook Youtube Twitter LinkedIn



Market Fundamentals