Guru Strategy: Investors beware, Japan could be a value trap

Updated

Global investors, beware: Japan could be a classic value trap.

Japan's central bank took an aggressive stance against deflation on Tuesday, announcing it will inject $115.7 billion into the economy. So far, the move has not been dramatic enough to bolster the market significantly or impress economists. Japan's Nikkei index was up 3.4% at the close of the day.

While the move comes on the heels of good news, investors seeing an opportunity to profit should be wary. Yes, Japan has posted two straight quarters of economic growth. In its third quarter, gross domestic product grew at an annualized rate of 4.8% due to strong demand for Japanese products. When you combine the country's recent growth with its anti-deflationary measures, you would think you have a recipe for a rebounding economy -- and profits for investors.

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