The outlook is improving

Restructuring announcements in Japan are less prolific these days and the new buzzword is recovery. But we should not lose sight of efforts to restructure. For investors, economic growth without profits is like a rubber bone for a dog: interesting, but ultimately unrewarding. The cyclical upturn in Japan, whether you are cautious or more optimistic, will inevitably end and companies that have not embraced the leaner-and-meaner philosophy will be found wanting. The investor who makes restructuring a priority can probably rule out some sectors. Construction companies have done very li...