Japan, Inc.: Nikkei Is Handily Beating Dow

Posted: May 09, 2018 9:45 AM
Japan, Inc.: Nikkei Is Handily Beating Dow

We’ve gotten so used to the Japan stagnation story that many of us have stopped paying attention. But not all of us. I helped build and help maintain a global equity index called VIEQX, and it held Japan at its highest allowable weighting as of the last rebalance at the end of January earlier this year.

I won't lie: That weighting hurt the index for the first couple of months.

But since late April, Japan has been a stellar performer, beating most of the world, and beating the Global Dow.

(The orange line is the Global Dow)

It has beaten the US Dow handily during the last month, as well.

(The orange line is the US Dow)

What has been going on with this country best known for two lost decades of economic growth, and what made it an attractive investment? I'll take on that topic shortly in an upcoming column.