Wealthy Opinions: Japan, Falling Knife or Buying Opportunity?

I have a question to ask.

How many of you actually jumped and bought Japanese stocks?? The Nikkei 225 Stock Index was down by more than 16% in past two days, {but is up today by almost 5% (at this point)}, due to the scale of disaster.

So, how many of you dared to buy the blue-chip Japanese stocks?? I don't think so may!!

I actually wanted to post this article yesterday but was really busy digging good companies which could be bought for my clients.

Oh Yeah! "My Clients". Dint I mention this before? I have started Wealthy Investment Management (private investment firm) and have so far managed to accumulated more than $ 100k. - as of now i don't charge any management fees ;).

OK, back to Japan!! As I was mentioning, one had/has really nice opportunity to grab fundamentally sound companies at reasonable price levels, yesterday or may be even today.

I fail to understand, why were people shrugging stocks? I know, "not every dip is a buying signal", but one should also not miss an opportunity!!

(Though) Japan has got one of the worst Debt-to-GDP ratio (roughly 110%) in the world and this crisis will surely add more strain to already bloated balance sheet of the country. So What?? Does the world come to an end? I don't think so!!

If we rewind back our memories, not so in distant past (26th Dec 2004) we had another Tsunami, where most of the South Asian countries were engulfed under water. What happened after that. We all were shocked due to devastation. Markets fell, but not as bad as witnessed yesterday and day-before. Investment community (including me), is calling this as "Over Reaction" and an extremely good opportunity to grab stocks at a discount. Though the market is up today, it is still not covered all the losses made in past two days.

So, go Grab the Deal. Buy stocks.....In fact, one need not look at Japan alone'coz companies related to nuclear industry are also under heavy selling pressure - all over the world.

Open your eyes and think, "are people really overreacting to the situation or will this Tsunami be a bad omen to the Japanese companies and nuclear industry?

Happy Investing!!!

Nikkei 225 stock average (from 1st Jan-2007 till 15th Mar-2011)