Japan meeting its 2% inflation target are high. Interest rates are rising. Wages are finally starting to grow. And the stock market is reflecting all of this. This time, the changes are macroeconomic and fundamental, not just based on hype or speculation.
So, is now the time to invest in Japan? The answer seems to be a cautious yes. While the narrative of Japan’s resurgence is compelling, investors are advised to be mindful of the potential risks and to not get carried away by the excitement. The market may be entering a period of consolidation after its rapid rise, and it’s important to approach investing in Japan with a long-term perspective.
As Japan transitions to a new growth-oriented economy and more Japanese households begin investing in the stock market, valuations are expected to increase. The potential for growth in the Japanese market is significant, but it’s crucial for investors to carefully assess the risks and opportunities before making any investment decisions.