Japan Disaster Thoughts (Mar. 2011)

First, we offer our most heartfelt condolences to all those who lost their lives, to their families, and to all those now in unbearable circumstances. Placing numerical values on the economic losses is an intolerable insult to all those who lost their lives and to their families and relatives, and is morally indefensible.

Uncertainty is the operative word in Japan, but as we take a step back and think about the broader economic impact, it’s worth noting that this natural disaster is happening at a time when the U.S. data looks solid (good valuation vs. bonds/cash, the market has a free cash flow yield close to 7%, among the highest in history,  and balance sheets have never been better, confidence, consumer spending, hiring, and the availability of credit are increasing, and equity funds see inflows).

See more at http://tinyurl.com/bfm-nwslet-Mar2011-Bull-Japan