With the surging Nikkei, it’s time to take another look at Japanese stocks. Here’s the best (and easiest) way to profit

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Once seen as a fading economic power, 2024 has brought a change

With the surging Nikkei, it’s time to take another look at Japanese stocks. Here’s the best way to profitThe major North American indexes pulled back last week after the release of disappointing U.S. inflation numbers and concerns that the long-anticipated interest rate cuts might be farther in the future than people hoped.

Japan has been seen as a fading economic force by many investors in recent years. It’s aging population and low immigration are putting pressure on the workforce and a recent OECD analysis said that “global economic, monetary, and financial sector developments have increased risk and uncertainty”. The stock market looked like it was going to the moon. On Dec. 29, 1989, the Nikkei hit an intraday record of 38,957.44, having increased by six times over the decade. No one at the time suspected it would not see that level again until Feb. 22 of this year – more than 34 years later.

There are several mutual funds and exchange-traded funds that specialize in Japanese securities. One of the top performers is an ETF most people are unfamiliar with: the CI Wisdom Tree Japan Equity Index ETF . As of the end of March, the fund was showing a first quarter gain of 23 per cent and a one-year advance of 57.8 per cent.

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