Investment Thesis

For over a decade, the default recommendation for retail investors worldwide has been simple: buy a global index fund and forget about it. The MSCI All Country World Index — or its close cousin, the S&P 500 — became the intellectual path of least resistance. And for a long time, it worked beautifully. But the conditions that powered that trade are shifting. I believe we are entering a period where Japanese equities will meaningfully outperform global indices. This is not a short-term tactical call. It is a structural argument built on five mutually reinforcing pillars. ...

On 8 February 2026, Sanae Takaichi won a landslide victory in Japan’s snap election. Her LDP-Ishin coalition secured 352 seats in the 465-member Lower House, surpassing the two-thirds supermajority threshold. For the first time in years, Japan has a government with both a clear economic agenda and the parliamentary authority to execute it. For US and European investors who may not follow Japanese politics closely, this matters. The policy framework that Takaichi is building, sometimes called “Sanaenomics,” represents the most explicitly growth-oriented programme Japan has pursued since Abenomics a decade ago. But where Abenomics relied primarily on monetary policy, Takaichi’s approach centres on industrial strategy and direct fiscal spending. The difference has implications for which sectors benefit and how foreign investors should think about exposure. ...