On valuation grounds, there is a compelling case for Japan but, as experienced investors will know, it has been a value trap for years. Personally, I have decided to buy Japan only when it shows clear and unambigous signs that buyers outweigh sellers - best seen through technical signals. In that way, I hope to buy an uptrend knowing that if there is significant value there, the uptrend should be a long lasting one and missing the first 10-15% should not be overly concerning.
Rory Gillen