Homma-sensei would be buying Nikkei call options right now. Taking the other side of panic usually works. In 1755 the developer of systematic pattern recognition and candlestick analysis wrote "Buy when the crowd is selling". The current emerging markets and commodities "booms" are ideal for his relative value strategies. Some investors even attempt to find alpha without mastery of his methods. No wonder most of them lose over time. As they will find out soon, bull markets hide many problems.
Apart from immediate cash, the best way to help a region get back to business is to go there and invest. In the north it's a rescue situation now but the worst hit areas will be looking to reconstruct. Northern Japan having been the home of the world's greatest ever money manager also has superb hot springs, traditional ryokan, ski resorts and mountain hiking. The local economy will need customers. And investors.
I'm arranging an investor trip to the affected areas in Japan. The values and opportunities now are compelling. Anyone or any group interested is welcome to get themselves to Tokyo in September prepared for a one week journey. I can sort out the logistics within Japan. It's a great time to visit Tohoku. The best ryokan and hot springs are available then. The region will need assistance long after the media goes home. There really is a triple bottom line for win/win/win investing.
A rough one week itinerary:
1) Head to Homma's home town to visit his historic house, trading room, garden, art gallery and the family office/corporation he founded that exists today
2) As far as is practicable and respectful, visit the worst hit parts of the north east coast. And hopefully directly help some devastated local families and villages
3) Visit some alpha places in Tohoku I don't want the beta crowd to know about
A week of your time that won't be wasted. All participants will receive the only English language translation of Homma's great work on investing - "The Fountain of Gold". That's after viewing the real fountain of gold. The Sage of Sakata paved the way for modern day alpha capture superstars like the Oracle of Omaha and the Brain of Budapest.
Since the earthquake, tsunami and radiation scare, I haven't been able to contact several people I know that were in the worst affected area and their chances look remote. But the survivors will need plenty of help. Also having rescued and adopted many animals over the years, I'm concerned about the fate of displaced Japanese pets and work animals. Whether it's guarding an injured friend, a forlorn horse, baby dolphins, deer on sacred Kinkasan or the famous Cat Island.
If you can donate it would be great. Soon the north Japan situation will drop off the headlines but problems and desperation will remain. Bigger cities like Sendai, Kesennuma and Kamaishi have lost thousands in population. I've been to those sadly now well-known places like Minamisanriku, Minamisoma and Rikuzentakata. Charity now but socially responsible infrastructure investing soon.
Please let me know. If you can't make it, please consider donating anyway. You can email HedgeFundBlog@gmail.com if you have interest in the trip.
by Veryan Allen. Copyright 
Thanks To Hedge fund