Mythbusting in Japan: Five reasons why investors are missing out on investment opportunities

The truth behind the myths

clock • 2 min read

Some investors are missing out on growth opportunities in Japan due to a reliance on myths about the Olympic host nation. For several reasons, Japan is often misunderstood by those outside the country.

It is time to reconsider the top five myths about the nation: Ageing population There is a view that an ageing population means the country is not experiencing growth. However, while Japan's nominal GDP has grown by just 9% since 1994, total corporate profit was up by 140% in USD terms by the end of March 2020. The growth is there - you just need to know how to find it. Lack of analyst coverage Around three-quarters of the investable companies in Japan have either one analyst or no analysts covering them. Skilled investment managers can identify specific sectors and ...

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