Solid growth ahead for corporate earnings

The Japanese economy has entered a long-term growth phase. If we look at valuations, the P/E multiple is roughly 16 times which, historically, is a low level, and in terms of corporate earnings, I believe we could expect 10% growth. Japanese companies' corporate governance has improved in the past five years, with management enhancing shareholder value through raising dividends and via buyback schemes. This leads us to believe that 2008 will show solid corporate earnings growth, driven by exporters that benefit from the robust economies of the Bric countries (Brazil, Russia, India and Chi...