Why you should buy US stocks in Japan
When it comes to stocks, US stocks are considered one of the best places to invest because the US stock market has a long history of stability and growth. Additionally, many of the world’s leading companies are based in the US, so there is a high potential for returns.
If you’re looking to invest in stocks, you may wonder if you should buy US stocks in Japan. Here’s why you should consider doing so:
As of early 2018, the country’s total market capitalization was about $5 trillion. That’s only about one-third the size of the US stock market, which is estimated to be worth around $30 trillion.
That means that there are fewer investment opportunities in Japan. And it also means that the Asian stock market is more volatile than the US. So, buying US stocks may be a better option if you’re looking for exposure for your portfolio.
Another reason to buy US stocks in Japan is that the Japanese economy is still recovering from its ‘lost decade’ of the 1990s. While Japan has made significant progress in recent years, it’s still not as strong as the US economy.
That means that Japanese companies are more likely to underperform their US counterparts. And that could make it challenging to make money in the Japanese stock market. So, buying US stocks may be a better option if you’re looking for growth.
One of the best reasons to buy US stocks from Japan is the high potential for returns. While the Japanese stock market has been stagnant in recent years, the US stock market has continued