Should investors avoid Japan because of its weak economy?

Japan's domestic economy still seems to be stumbling along. From one quarter to the next, Japan data watchers have been rewarded with revisions down (FY2016 GDP revised to 0.9%, down from 1.7%) as well as revisions up (Q2 GDP revised up to 0.7% quarter-on-quarter, up from 0.2%).

However, a weak economy is no reason to not invest in Japan. Companies have learnt how best to survive the low-growth economic conditions over the past 20 years - and indeed have thrived.  Corporate transformation and restructurings, when successful, can be highly profitable for long-term, patient investors. The quality of management can have a transformative effect on enhancing corporate value, profitability and shareholder returns.  The key considerations for Japan investors as QE experiment extended We have also found that a few domestic companies, such as Nitori Holdings and Ts...