Is it different this time for Japanese stocks?

Nikkei 225 Index has jumped 19.8% this year, and there are signs the rally could continue.

Mt. Fuji and the Tokyo skyline
(Image credit: © Getty images)

We’ve been telling you to buy Japanese stocks for the best part of two decades, although for the most part, this trade hasn’t worked out.

However, this year, Japanese equities are soaring. The Nikkei 225 Index has jumped an impressive 19.8% on a total return basis since the start of the year, taking the index to a 33-year high. In comparison, the MSCI AC World Index has returned 8.5%.

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Rupert Hargreaves
Contributor and former deputy digital editor of MoneyWeek

Rupert is the former deputy digital editor of MoneyWeek. He's an active investor and has always been fascinated by the world of business and investing. His style has been heavily influenced by US investors Warren Buffett and Philip Carret. He is always looking for high-quality growth opportunities trading at a reasonable price, preferring cash generative businesses with strong balance sheets over blue-sky growth stocks.

Rupert has written for many UK and international publications including the Motley Fool, Gurufocus and ValueWalk, aimed at a range of readers; from the first timers to experienced high-net-worth individuals. Rupert has also founded and managed several businesses, including the New York-based hedge fund newsletter, Hidden Value Stocks. He has written over 20 ebooks and appeared as an expert commentator on the BBC World Service.