No. of Recommendations: 4
The Nikkei 225 is back at levels not reached since 1989.*
The 34 years it has taken to regain its footing is a record, too, for a major market and is a decade longer than Wall Street took to recoup losses from the 1929 crash.
Back in the 1980s, Japanese companies were on top of the world - according to Reuters data, representing 45% of global stock market value at their peak, versus just 6% now.
Kinda what you would have expected from those valuation levels? (45X Earnings! US Market Currently 27X.)
Higher valuations = lower future returns, it's basic math.
How lucky we are that this could never happen here! ;)
Cheers!
Of course still far short of the inflation adjusted level of 1989.*
reuters.com - Nikkei parties like its scales record high 