Investors are scared of the impact of rising bankruptcies. And on top of that worries of a war in Iraq and a slowdown in the U.S. economy are really weighing.

Investors are scared of the impact of rising bankruptcies. And on top of that, worries of a war in Iraq and a slowdown in the U.S. economy are really weighing.

Iraq, North Korea, surging oil prices... [means] global equities will likely remain under pressure until war begins next year.

While there are concerns about the slowdown in the U.S. economy, what's keeping investors optimistic is the expectation that the Fed is going to ease on interest-rate hikes. That's going to provide support for share prices.

There is a very real risk that Koizumi's plans to reform the banking sector will be so watered down that they will end up pleasing no one,

The U.S. is starting to show some reassuring signs that growth remains intact, and that's one element of comfort for investors to keep buying Japan.