How to invest in Japan? What to watch out for, what are the specifics and what is the easiest way?
The Japanese stock market has been a big draw for investors lately. Especially because of the news about Warren Buffett's purchases in this country. How can you invest here? What to watch out for and what to look out for?
The Japanese stock market has several specifics.
The Japanese economy has grown very slowly over the past few decades, limiting the earnings potential of many companies. The Tokyo Stock Exchange is therefore not one of the best performing in the world.
Japan is facing rapid demographic ageing and a declining population, which is limiting demand for many products and services. This means that companies have to fight all the harder for fewer customers. A large part of the Japanese economy is dependent on exports, especially to China and other Asian countries. Economic problems in these countries can thus have a major impact on exporters.
The Japanese stock market is dominated by the financial sector in particular, which increases the market's vulnerability to falling asset…