Nikkei 225 and Shanghai Composite Index have been flat for decades
to put concrete number on this, the Nikkei 225 is up 41% in the last year and 78% in the last 5 years denoted in yen [which lost 30% of value to USD in the last 5 years] for better tracking, maybe the iShares MSCI Japan ETF [EWJ] denoted in USD would be a better measuring instrument. EWJ is up 53% in the last 10 years [since 2014]
compare to QQQ tracking NASDAQ up 394% and IYY tracking Dow Jones up 170% in the same time period [since 2014].
To be clear, I was talking about the period up to 2019 and COVID. The cultural attitudes about investing in stocks vs money in bank accounts came from Nikkei performance before the last few years.
Since 2019, it’s up 2x, but the yen went down vs the dollar and there’s been some inflation. In terms of what a unit of the Nikkei can buy in America, the valuation is flat since 2019. Which might actually be a hint about what’s driving the relative valuation...?
to put concrete number on this, the Nikkei 225 is up 41% in the last year and 78% in the last 5 years denoted in yen [which lost 30% of value to USD in the last 5 years] for better tracking, maybe the iShares MSCI Japan ETF [EWJ] denoted in USD would be a better measuring instrument. EWJ is up 53% in the last 10 years [since 2014]
compare to QQQ tracking NASDAQ up 394% and IYY tracking Dow Jones up 170% in the same time period [since 2014].
Calculation not including dividend
To be clear, I was talking about the period up to 2019 and COVID. The cultural attitudes about investing in stocks vs money in bank accounts came from Nikkei performance before the last few years.
Since 2019, it’s up 2x, but the yen went down vs the dollar and there’s been some inflation. In terms of what a unit of the Nikkei can buy in America, the valuation is flat since 2019. Which might actually be a hint about what’s driving the relative valuation...?