Alternative assets that buck the markets have been a sweet spot for global investors seeking higher yields. For many in Japan, where the Nikkei 225 has fallen 36% since August 2000 and bond yields have been minimal, the search for that sweet spot led them to cows.
Several decades ago, Agura Bokujo, once Japan's second-largest beef producer, created a "wagyu beef ownership system" for retail investors, which promised returns of up to 8% every year, reports Japan Real Time. Investors could purchase "wagyu" cows for $35,000 to $58,000 per head with the promise of their spawning lucrative offspring. In Japan, wagyu cows are known as the "caviar of beef" because of the way their fat enhances flavor. They are pampered with beer and massages to enhance their unusual marbling, and they typically produce steaks that retail for several hundred dollars a pound. At the end of a several-year-long contract, the farm agreed to repurchase the cows from investors.
But as it turns out, the cows were in the wrong place at the wrong time. The discovery of foot-and-mouth disease in 2010 year caused beef prices to plunge, and the farm slaughtered 15,000 cows. Shortly thereafter, the region where the farm was located was leveled by a the 2011 earthquake and tsunami, which damaged the nearby Fukushima nuclear power plant.
A Tokyo court sentenced former Japanese baseball star Kazuhiro Kiyohara on Tuesday to two years and six months in prison, suspended for four years, for possessing, using and purchasing illegal drugs. (Japan Today)
Fukuoka Prefectural Police are investigating a 29-year-old female sex worker already in custody for attempted murder in a separate case in which an acquaintance fell to her death from a bridge, reports the Sankei Shimbun. (Tokyo Reporter)
The Japanese government said on Monday it was doing all it could to secure the release of a Japanese journalist being held hostage by an al-Qaida affiliate in Syria, after an apparent photograph of the man was posted on the Internet. (Japan Today)