What investors have learned from the major earthquake

Wednesday, September 21, 2011 - 15:31 in Earth & Climate

The Great East Japan Earthquake has dramatically altered the way the Japanese economy is seen. For example, the way that housing and real estate values are seen in Japan has changed since 3.11. Location value is what determines the values of homes and real estate. Before the major earthquake, for example, locations for residential areas in the Tokyo metropolitan area with beautiful townscapes were highly appraised, even if they were landfill sites. The preferences of people toward residential areas have greatly changed since 3.11, however. Safety is now more of a concern than factors such as convenience and comfort. Factors such as whether or not there are active faults or the durability of the ground, which had been viewed as relatively unimportant, have all suddenly become important issues. Let us take a look at the psychological changes that have occurred in people’s minds after the major earthquake through stock and...

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