To The Moon

🌟🌟🌟Japan, The Land of the Rising Sun is the world 's 4th largest economy.   Japan' s Nikkei Index breached 40,000 points in March for the first time since 1989.  Latest breaking news today is that the Bank of Japan has hiked its interest rates for the first time in 17 years and abolished its yield control curve policy.  Japan is the last country in the world to end the negative rates regime on early signs of robust wage gains this year.

Why is the Japanese stock market going up? 

One of  the  reasons is the AI fueled boom for semiconductors that has powered the S&P500 is also driving Japan's stock market.  Japan has the biggest number of technology stocks outside of the US .  Japanese's companies have seen its last quarter of 2023 earnings 45% higher year on year.  This is partly due to the weak Japanese yen which makes Japanese exports from companies like Toyota cheaper overseas. 

$Franklin FTSE Japan ETF(FLJP)$ tracks a market cap selected and weighted index of the best Japanese companies.  

The Top 10 holdings include Toyota Motor, Sony Group, Mitsubishi UFJ Financial Group, Tokyo Electron, Keyence Corporation, Shin-Etsu Chemical, Hitachi, Sumitomo Mitsui Financial, Mitsubishi Corp and Nintendo. 

The Top 10 weightage is 22.9%. Total number of holdings is 513.  The expense ratio is a low 0.09%.  Distributions are paid twice a year.  The current distribution yield is 2.78%.

Toyota is the largest automobile manufacturer in the world producing about 10 million  vehicles per year. 

Sony Group Corp is a conglomerate that specialises in the development, design, production, manufacture and sale of electronic equipment, instruments and components.

Mitsibishi UFJ Financial Group is a diversified comprehensive financial services group.  It owns Bank of Tokyo, Mitsubishi UFJ Trust and Banking as well as Mitsubishi UFJ Securities Holdings. 

Tokyo Electron is Japan's largest maker of semiconductor manufacturing equipment and ranks 4th globally in sales.  It has a Zacks Rank Number 1 which is a Strong Buy.

Even Warren Buffett has invested in Japan with 5 Japanese Stocks which are Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo.  He said that he intends to hold these Japanese companies long term. 

Performance wise $Franklin FTSE Japan ETF(FLJP)$ is up 1.3% today and in the past 5 days, it is up 1.4%.  However FLJP is up 10% year todate and in 2023, FLJP is up 22%.

The sun is rising on Japanese stocks once again.  $Franklin FTSE Japan ETF(FLJP)$ is my tactical bet that it will continue to rise in the  future.  I like $Franklin FTSE Japan ETF(FLJP)$ as it is low cost, well diversified and even pay good dividends while I wait for capital growth. That's my favourite kind of investing - Dividends and Capital Growth - A Winning Combination! 

@Daily_Discussion  @TigerStars@MillionaireTiger  @Tiger_comments   @CaptainTiger  @TigerClub  @Tiger_SG