Quote on Japan from June 1 Business Week mag

Japan Funds: Can the Rally Last?

As with India, investors should play Japan's recent surge with caution. Mutual funds that invest in Japanese stocks soared 7.15% during the first week of May, enticing investors to add more than $200 million to Japan funds—the biggest inflow since last year's third quarter. But don't assume the market's momentum can continue, says Campbell Gunn, manager of T. Rowe Price Japan Fund (PRJPX). Japan's economy has stagnated for decades, and because of declining exports, growth in fiscal year 2009, which ends next March, is expected to be the worst since 1974. "For the rally to be sustainable, a substantial recovery in [exports] will be required before the end of the fiscal year," Gunn says. For investors who want to bet against Japan, Matthew McCall, president of Penn Financial Group in Ridgewood, N.J., recommends shorting the iShares MSCI Japan Index Fund (EWJ), the most actively traded Japan exchange-traded fund. Or, to amp up a short bet, there's the ProShares UltraShort MSCI Japan (EWV). Because this ETF is designed to double the up or down moves of its benchmark, it is more appropriate for day traders, says McCall.

—Lauren Young and Tara Kalwarski

http://www.businessweek.com/magazine/content/09_22/c4133moneyrepo247549.htm?chan=top+news_top+news+index+-+temp_investing