Japan could be the best of both worlds for investors

When it comes to economic stagnation, Japan serves as the poster child for most investors. The phrase "turning Japanese," after all, serves as shorthand for the unrelenting deflationary mire that has gripped the country for decades.

But things may be slowly changing behind the scenes. Japan's exposure to booming economies in the region like China and India may be fueling a resurgence in corporate earnings. That means the poor sentiment surrounding the country may give investors a chance to pick up a highly stable market on the cheap.