Where Japan Is Headed After Emerging from the “Lost 30 Years,” in the View of a Nikkei Editorial Board Member (Tokyo Stock Exchange's Money-bu!)

In December 1989, the Nikkei Average reached ¥38,915, leading to the collapse of the bubble. It took approximately 34 years for the index to surpass its previous record high, a historical trajectory that was revisited. The first part of the series looked back at this history from the author's perspective.

In this second part, the current surge in stock prices was described as “overheating,” but not as a “bubble.” Compared with the past, when issues such as nonsensical stock price theories and widespread insider trading cast a deep shadow over the market, the current situation is different, partly because enforcement action has advanced.

It was pointed out that improvements in retail investors' financial literacy and expanded access to information are reshaping the investment environment through developments including NISA, stronger investor relations, and more active general meetings of shareholders. The discussion also touched on concerns about the financial strain referred to as “NISA poverty,” emphasizing the importance of investing within one's means.

It was said that Japan is once again at a point where it must balance its traditional management practices with globalization, and the importance of value creation by Japanese companies and dialogue-based investment strategies is being reassessed. Prospects were discussed for promoting the Japanese management model globally while looking ahead to a new transitional phase for Japan's market.