Nikkei 225 pre-trading about 4% down.

Reaper

The situation in Japan is worse than I thought originally, but even so I think the markets might be overdoing it and I must admit I am tempted.

However the reasons I have not invested in Japan to date still stand - I don't like the overpriced Yen and they have a crippling national debt (228% of GDP and rising!) which can't be ignored much longer. The markets seem to pick on 1 country at a time to be the one to panic about next and before all this happened I thought it possible Japan would be next. Recent events could be the trigger.

mr_fishbulb

Reaper wrote: »

However the reasons I have not invested in Japan to date still stand - I don't like the overpriced Yen and they have a crippling national debt (228% of GDP and rising!) which can't be ignored much longer. The markets seem to pick on 1 country at a time to be the one to panic about next and before all this happened I thought it possible Japan would be next. Recent events could be the trigger.

Japan's debt, whilst high, is slightly different in that a high proportion is owned by the Japanese public themselves. But if the economy does crash, then I'm hoping it finishes by the end of the month as I have a pension contribution going in

optimusf_2

Hi Guys

As a new investor - what would you guys personally recommend to use in order to purchase shares??

Also if someone could help to explain the costs involved would be appreciated! Because i think investment in NIKKEI could be worthwhile?

theGrinch

I would wait a while to see how things pan over re nuclear problems rather than rush in

Reaper

optimusf wrote: »

Hi Guys

As a new investor - what would you guys personally recommend to use in order to purchase shares??

Also if someone could help to explain the costs involved would be appreciated! Because i think investment in NIKKEI could be worthwhile?

It depends what you want to do - buy individual shares, a tracker, or a fund.

I'm guessing from the way you phrase the question you are looking for a tracker. A cheap example of this would be the HSBC MSCI Japan ETF with a TER (Total Expense Ratio) of 0.4%pa.

You should be able to buy it through any stock broker and even put it in a Stock & Shares ISA if you want. X-O, iii or Hargreaves Landsdowne are 3 possible places to buy it through and don't add too much in their own charges.

P.S. you will be exposed to currency risk if the Yen dives. While more expensive some funds hedge the currency risk so you get closer to the true market performance. A possible alterntive for the longer term.

edinburgher

Hi Guys

As a new investor - what would you guys personally recommend to use in order to purchase shares??

Also if someone could help to explain the costs involved would be appreciated! Because i think investment in NIKKEI could be worthwhile?

If you literally have no experience of buying shares/funds, I wouldn't recommend starting with Japan, especially in light of the current situation.

Despite some strengths to their economy/tendancy of people to panic as they see disasters unfold in the media, Japan does have very high debts, an ageing population and has been quite a poor place to invest for the last couple of decades.

Perhaps hold as part of an eventual portfolio, but you might be better off starting with equity closer to home 'til you get the hang of things.

optimusf_2

Hey Reaper

Thank you very much for the useful information provided.

But im looking to buy individual shares as oppose to tracker or a fund. Im just finding the costs rather confusing.....

I have a stock and shares set up with Halifax, whilst setting it up i was informed by the advisor that i will be able to move the amounts invested from different funds, it has been 4 months and i havent been able to do this, so now im setting up an appointment with the Financial advisor again....

Soory to diagress from the topic, but ive been meaning to get my hand in the stock market, and i thought investment in the NIKKEI would be fortuitous....

sabretoothtigger

Japan stocks have been in decline for twenty years so it would be an usual place to start investing.
I hold neptune japan fund and it has lost almost 8% in one day however the guy who runs it is well aware of finance problems Japan has and I believe the fund was at 20% cash so maybe he can still turn it around.

Reaper

optimusf wrote: »

But im looking to buy individual shares as oppose to tracker or a fund. Im just finding the costs rather confusing.....

You would need to find a broker that let's you trade foreign shares. I can't recommend one as I have only bought UK quoted shares to date, but I think people like TD Waterhouse will let you do it, though not quite as cheaply.

However as others have said (and me in an earlier post) this is a high risk area to be investing in. I am still concerned the Yen might take a dive.

Since posting I have found an ETF tracker that includes currency hedging (though with the Euro rather than sterling) which I might consider if do decide to invest. It's the iShares MSCI Japan Hedged.

Whatever you do remember high risk investments ought to make up only a very small part of your total.

Reaper

sabretoothtigger wrote: »

Japan stocks have been in decline for twenty years so it would be an usual place to start investing

Did you mean usual or unusual?