History might not repeat itself, but it rhymes.
The last time Japanese stocks hit an all-time high, the yen was floating around 145 to 150 to the dollar; the Bank of Japan was working on interest rate hikes amid concern over inflation, which was nonetheless modest compared with other countries. The country¡¯s soft power was dominant overseas; self-help and management gurus floated supposed secret Japanese life-hacks.
Many things have changed since that long-standing record for the Nikkei 225 stock average on the final trading day of 1989. That was the era of arrogance captured in ¡°The Japan That Can Say No,¡± the essay by conservative politician Shintaro Ishihara and Sony Group co-founder Akio Morita that advocated for an assertive nation ¡ª the period where it was seen as a trade monster that was coming for U.S. jobs. No matter how bullish foreign investors might be on Japanese stocks today, no one thinks a country that just saw its gross domestic product surpassed by Germany is on course for global dominance.
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