Japan's Stealth Bull Market: How U.S. Investors Can Get Exposure

The article argues Japan’s equity market is in a multi-year, stealth bull market driven by corporate governance reforms, sharply higher buybacks and dividends, and a weak yen that has boosted exporter earnings and foreign inflows. It highlights ETF routes for U.S. investors—broad exposure via EWJ and currency-hedged exposure via DXJ—and contrasts single-stock plays: Sony as a diversified growth/value winner and Toyota as a contrarian turnaround with upside but execution risk. Key market risks identified are a yen recovery that could compress margins and stretched valuations. Overall the tone is constructive for continued Japan equity outperformance, though investors should weigh currency risk, company-specific reform progress and valuation.