Japan Stocks Can Be the Haven in a Bleak World
Stable politics and a positive economy make the country a top pick for the New Year in a troubled global environment.
There are 40 million tourists expected in Japan in 2020, when Tokyo will host the Olympics.
Photographer: Kentaro Takahashi/BloombergGlobal equity investors have reason to be concerned: The economic outlook is worsening, interest rates are rising and tensions in the U.S.-China relationship could further harm growth. But all is not bleak. Japan provides a measure of certainty and promise, with a stable government, expanding economy, improving return on equity and booming tourism.
Japanese stocks aren’t reflecting these positive factors. The Topix entered a bear market in 2018, dropping more than 22 percent from its January peak to a two-year low. The index closed out its worst December performance in 59 years on Friday.1 Year to date, international investors have sold more than $48 billion of shares.