While U.S. stocks are having a stellar year, Japanese stocks are doing even better. Year-to-date, the Nikkei 225 is up nearly 40%. Even after adjusting for a falling yen, Japanese stocks are up around 23%.
I continue to believe that Japan offers more upside potential in the next three months to six months, and I see near-term opportunities in the market, particularly if investors can hedge out the foreign currency exposure. The case for Japan relies on four arguments: