This brings me to one of my favourite long-term investments – what many readers insist is my “blind spot” and a market that no one has used the word “bubble” to describe for over two decades. I’m talking about Japan, of course (full disclosure: I am on the board of BG Shin Nippon, a Japan-focused investment trust). We know Japan is cheap on all sorts of levels. Paul Bennett of Walker Crips puts it on a price-to-book ratio of about 1. That’s a 40 per cent discount to the average price-to-book of the stocks in the MSCI world index. At the same time, 40 per cent of companies listed in Japan have net cash equal to their stock market value (so there is some real protection on the downside!).