Opportunities to Profit Admist Destruction


While the March 11th tsunami caused the Japanese stock index, the Nikkei 225, to drop as far as 10% in the wake of the crisis, foreign investors saw this as an opportunity to buy shares in the Nikkei at historically low prices. Investors believe stock prices will rise back to pre-crisis levels relatively quickly once the reconstruction process has begun. Therefore buying Nikkei shares at current discount prices has the chance to turn into a hefty profit for investors. This investment forecast is being supported by one of the world’s wealthiest investors, Warren Buffet. Buffet sees the tsunami as an extraordinary event that will only effect the short term growth of the Japanese economy. Other investors, such as CNBC’s Jim Kramer, believe investing in American construction companies like Caterpillar is a great opportunity to make a profit, as this company will be in high demand in Japan during the reconstruction process.

Kelly L.

Sources: dealbook.nytimes.com | video.cnbc.com

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