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‘Fear rules market but it should be contained’

Hargreaves Lansdown investment manager Ben Yearsley says now may be the time to feed assets into pure Japan funds after markets fell early this week.
Japanese markets have been rocked by the earthquake and tsunami that hit last Friday.

Yearsley says: “Japan was the cheapest market before this terrible news and now it is even cheaper. You have to factor in the possibility of earnings and growth falls as well as rises in tax – but this is a sharp fall. It could well be a V-shaped recovery with the work that needs to go on to repair the damage. I would go pure Japan and dripfeed money in as there are still problems with the nuclear reactors.”

Skerritt Consultants head of investment Andy Merricks says: “Stay with it if you are invested but there are market volatility concerns. We will look to rebalance once things calm down.”

Bestinvest senior investment analyst Adrian Lowcock says: “Fear is ruling the Japanese market. The likely outcome is things will be contained and there will be money spent on restructuring and the currency will be allowed to devalue in comparison to global markets. Dripfeeding money over time looks like a good prospect.”

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