Not only was Japan hit hard by the world recession but the economy also had its own internal woes and has suffered a serious bout of deflation over the last several years. This was one of the reasons the US became so paranoid earlier this year about the dangers of deflation taking hold.
The Japanese market is like so many markets or stocks that investors turn their back on, they can quietly recover in the background and if you totally ignore the market you can miss out on extraordinary returns.
Have you missed the upturn in Japan? Have a look at the chart below for the Nikkei 225 Spot Monthly and you can put into context where the market is now. I don’t think it is useful to go back to the 80’s when the Nikkei hit 40,000 as those times are unlikely to be repeated within a predictable time frame – the global trade and industry structural changes over the last two decades have been too great to forecast a repeat of that Japanese economic explosion.