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A Huge 113,000% Rise in Seven Years – And Plenty of Upside Ahead

By Dr. Steve Sjuggerud
Monday, November 13, 2017

About seven years ago, the Japanese government apparently decided to buy up the Japanese stock market.
 
I'm not kidding...
 
This situation could eventually lead to a bubble. But today, it's creating a huge opportunity for investors. Let me explain...
 
Since the end of 2010, Japan's central bank has increased its holdings of Japanese exchange-traded funds (ETFs) by 113,000%.
 
You can see it on the chart below...
 

The numbers are just staggering... The Japanese central bank now owns more than 16 trillion yen worth of Japanese ETFs. (That works out to about $140 billion in U.S. dollars.)
 
For a frame of reference, more than half of the total assets in Japanese ETFs are owned by the Japanese central bank.
 
And the pace isn't slowing down. Instead, it's speeding up... This year alone, the Japanese government has added $46 billion in ETFs to its portfolio – and we still have two months of data left to report for the year.
 
I told my subscribers about this story exactly one year ago in my True Wealth newsletter...
 
The headline to my story was "Little-Known 'Mr. K' Just Set Up the Best Trade of Our Lives."
 
Here's the deal.
 
"Mr. K" is Haruhiko Kuroda – the head of Japan's central bank. He's afraid Japan will backslide into deflation... And he has the power to prevent it from happening.
 
He's committed to buying Japanese stocks. And he's also committed to keeping interest rates at zero for an EXTREMELY long period of time.
 
So this gives us an incredible tailwind in Japan... zero-percent interest rates for the long run, AND a government that is committed to buying stocks. That is a recipe for an eventual stock market bubble.
 
Subscribers who followed my advice a year ago and bought the WisdomTree Japan Hedged Equity Fund (DXJ) are up 26%.
 
But you haven't missed it yet...
 
U.S.-traded Japan ETFs actually had a net OUTFLOW of cash in 2016. And this year, the net flow in Japan is basically flat. In short, Americans don't care... yet.
 
That means this trade has more upside ahead.
 
Long story short – this Japan setup is as good as it gets. Interest rates are at zero for the long run, and you have a multibillion-dollar tailwind in the stock market.
 
Don't miss it!
 
Good investing,
 
Steve




Further Reading:

"'Abe's revenge' will create a massive bubble in Japan's stock market," Steve writes. Japan's economic policies are setting up a huge opportunity for investors... And now is a great time to take advantage of it. Learn more here: Investors Just Bailed on These Stocks – We're In!
 
"The Japanese market just finished an amazing streak of gains," Brett Eversole writes. If history is any guide, this streak could mean bigger returns are still to come. Read more here: Why Japanese Stocks Could Soar 18% Over the Next Year.

Market Notes


NEW HIGHS OF NOTE LAST WEEK
 
BP (BP)... oil and gas
ConocoPhillips (COP)... oil and gas
Royal Dutch Shell (RDS-A)... oil and gas
CF Industries (CF)... fertilizer
Weyerhaeuser (WY)... timberland
Deere (DE)... tractors and farming equipment
Stanley Black & Decker (SWK)... tools and storage
D.R. Horton (DHI)... homebuilder
PulteGroup (PHM)... homebuilder
Hyatt Hotels (H)... hotels
Marriott (MAR)... hotels
Las Vegas Sands (LVS)... gambling
Wynn Resorts (WYNN)... gambling
Boeing (BA)... airplanes
Vail Resorts (MTN)... ski resorts
Royal Caribbean Cruises (RCL)... cruises
American Express (AXP)... credit cards
Visa (V)... credit cards
Amazon (AMZN)... online-retail juggernaut
Apple (AAPL)... iPhones, iPads, and more
Texas Instruments (TXN)... semiconductors
Corning (GLW)... smartphone screens
Match (MTCH)... online-dating monopoly
Grubhub (GRUB)... on-demand food delivery
Yum Brands (YUM)... Pizza Hut, Taco Bell, KFC
UnitedHealth (UNH)... health insurance
Becton Dickinson (BDX)... needles and syringes
Weight Watchers (WTW)... weight-loss help
Planet Fitness (PLNT)... low-cost gyms

NEW LOWS OF NOTE LAST WEEK
 
Sprint (S)... telecom
AT&T (T)... telecom
Fossil (FOSL)... watches
JC Penney (JCP)... retail "old guard"
Macy's (M)... retail "old guard"
Advance Auto Parts (AAP)... "Amazon victim"

premium teaser

A one-click way to own hundreds of Japanese stocks...
 
Peter Churchouse has lived and invested in Asia for more than three decades. Today, he agrees with me that the environment is good for Japanese stocks...
 

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