Yesterday I noted the following wrt the crisis in Japan:
"Whilst in the short term there will be a negative impact on the economy.. the medium term prospects are far rosier."
Unsurprisingly, as the situation on the ground in Japan continues to develop (especially wrt the nuclear reactor), there has been a downturn in the markets. The Nikkei shed 1000 points, and the FTSE is currently down by approximately 3%.
As long as the current situation remains volatile and unclear there will be some significant fluctuations in the markets as investors take fright, and shorters make a killing.
However, once the situation has stabilised I stand by the point that I made yesterday that the "..medium term prospects are far rosier..":
"The stimulation package announced by the central bank, and general economic boost provided by capital refurbishment projects will in fact do the Japanese economy (and world economy) a power of good."
Do not panic, and do not get suckered in by the media hyperbole of crashing markets and nuclear "meltdowns".