By With the exception of the consolidation of the last two sessions, the Nikkei has been exploding for the last ten days. On Tuesday morning, the Japanese index hit a 33-year high of 31,352 points, last reached in August 1990, and has gained 18% since the beginning of the year, thus offering itself the luxury of outperforming the S&P 500.
Where does this powerful buying flow come from? Mainly from abroad. Investors from around the world, scalded by the current economic environment, have shifted their capital, attracted by the Tokyo Stock Exchange's efforts to reform corporate governance and inspired by the Oracle of Omaha's recent attraction to the archipelago's tech stocks.
In a world where the United States is struggling with its debt, China with the United States, Europe with its neighbors and the United Kingdom with Europe, Japan is also an Eldorado protected from geopolitical upheavals and the vagaries of central banking. Finally, the (still) low interest rates, moderate inflation and weak yen have finally won over the last holdouts.
And there is enough to attract the clientele. Warren Buffett, through his investment vehicle Berkshire Hathaway, has announced that he has increased his stakes in the five largest Japanese trading houses: Itochu, Marubeni, Mitsubishi, Mitsui & Co. and Sumitomo, and now holds about 7%. The investor does not refrain from further increasing his stake in these groups, and also confesses his interest in other Japanese companies. In Japan, it's all-you-can-eat Buffett!
(After this great pun, I'd like to point out to the younger generation reading this that the interjection Kamehameha represents the war cry of the of a fighting technique from Dragon Ball Z - a Japanese cartoon that marked my childhood - and that the main representative of the series is Son Goku, the character from whom we took inspiration for the drawing of the day.
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