Days after Japan's devastating earthquake and tsunami, some investing experts pronounced the country's woes a buying opportunity. A cash stampede into U.S.-based Japan exchange-traded funds followed. But these investments carry greater risks than the average Joe probably realizes.
Not everyone is focusing on the down side of Japan's triple disaster -- tsunami, earthquake and nuclear catastrophe. Warren Buffett, for one, has faith in Japan's economic prospects. The Nikkei surged as investors searched for bargains in the wreckage.
If you look past the calamitous Libyan mess, there's plenty of cause for optimism at home. And investors with a longer-term view of the markets should consider the ongoing uncertainty stemming from the Middle East as a potential entry point for buying stocks.
Widespread pessimism among investors seems out of line with broader economic developments, which continue to be mixed. So stocks may be undervalued because investors are being overly conservative -- meaning this could be a good time to buy.
Some analysts are now worried about falling prices, sending big investors fleeing stocks for safer assets. But earnings are healthy and pockets of strength are emerging, suggesting it's a good time to go against the grain.