My Stock Portfolio Performance 3Q 2023
Analyzing the journey of my Japanese stocks: Performance review from July to present, insights on 3Q earnings reports, and future projections
Please note: This article is for informational purposes only and is not intended as investment advice. The mention of specific stocks is not a recommendation to buy or sell any securities.
3Q 2023 Stock Portfolio Performance Summary
I'm riding the wave of Japan's booming equity market. This year has been particularly exciting with a surge of global investor interest in Japanese stocks. The reasons are clear: Japanese companies, flush with nearly 2.5 trillion yen in cash and no debt, are thriving. The transition from deflation to mild inflation, coupled with an ultra-competitive yen (hovering around 150 to the U.S. dollar), has bolstered the economy. It's a golden era for local manufacturers, enjoying some of the lowest labor costs globally.
Corporate earnings are on the upswing. The profit margins in Japan have leaped to about 5.5% over the past decade, a significant jump from the historical average of less than 3%. This impressive turnaround is mirrored in the robust performance of Japanese equities, which, as per Credit Suisse, have yielded annual real returns of 7.4% since 2010.
Now, let’s dive into my portfolio’s performance: