- Japan Is Moving Rapidly From a “Bargain-Basement Market” Toward Inflation
- Three Reasons Why the Nikkei Average Is Heading Toward “100,000 Yen”
- Economic Inequality Explodes Behind the “Rosy Future”
- The Best Strategy in an Era of Inflation Is “Owning Stocks”
- 4 Hot Stocks to Invest In Without Overthinking It
- Summary: How to Navigate an Era Where the “Winners” and “Losers” Are Divided
Japan Is Moving Rapidly From a “Bargain-Basement Market” Toward Inflation
Japan is currently in a “bargain-basement” state, with prices that are abnormally low compared to other countries. For
example, there is an extreme price difference: while an egg sandwich in London costs 1,000 yen, the same sandwich in Japan costs only 200 yen.
However, this situation will not last forever.
With global inflation and a severe weakening of the yen occurring simultaneously, it is predicted that prices in Japan will also skyrocket, following the trend overseas.
In other words, an era in which “a 200-yen egg sandwich jumps to 1,000 yen” may be just around the corner.
And this rapid inflation will also have a major impact on Japanese stock prices.
Three Reasons Why the Nikkei Average Is Heading Toward “100,000 Yen”
1. Inflation Boosts Corporate Profits: When
prices rise, companies’ selling prices also increase. As a
result, sales and profits rise, creating an environment that tends to drive up stock prices.
2. Continued Buying of Japanese Stocks by Foreign Investors: Following
Warren Buffett’s visit to Japan, a large amount of foreign capital flowed into Japanese stocks.
By 2026, the Nikkei 225 had surpassed the 70,000-yen mark, significantly surpassing the all-time high set during the bubble era.
3. “The Strengths of Japanese Companies”
Driven by the AI Revolution: The AI revolution will further enhance the value of sectors in which Japan traditionally excels, such as manufacturing, robotics, semiconductors, and the content industry.
Given the combination of these factors, it can be said that a Nikkei average of 100,000 yen is no longer just a pipe dream but is increasingly taking shape as a “realistic future.”
Economic Inequality Explodes Behind the “Rosy Future”
If the Nikkei average were to reach 100,000 yen, the assets of stockholders would double, but a harsh reality awaits those who do not own stocks.
- Wages Are Not
Keeping Up with Rising Prices: Even if wages rise by 3 percent, if prices rise by 5 percent, real wages will be negative.
Daily life will actually become more difficult. - The Sharp Rise in Fixed Costs (Rent):
In recent years, it has become common for tenants to be asked to accept rent increases of 10 to 15 percent when renewing their leases.
Rising fixed costs can seriously strain household budgets. - As AI continues to replace
jobs and improve operational efficiency, we are entering an era where “one person can handle work that used to require 10 people.”
Even if corporate profits increase, only “shareholders” will reap the benefits, and this structure—which widens the wealth gap—will only become more entrenched.
The Best Strategy in an Era of Inflation Is “Owning Stocks”
During periods of deflation, holding cash meant that the value of your assets increased relative to falling prices.
However, during periods of inflation, that dynamic is reversed.
In the years ahead, stocks will become not merely a “means of growing wealth,” but a “defense mechanism to protect assets from inflation.”
The more the AI revolution accelerates, the greater the risk of not holding stocks becomes.
4 Hot Stocks to Invest In Without Overthinking It
Here are four powerful companies that will thrive in the age of AI and inflation.
① SECOM (9735)
is a “defensive stock” that positions itself to capitalize on the deterioration of public safety resulting from widening income disparities.
Thanks to its nationwide emergency response network and its recurring-revenue business model, its revenue base is extremely stable.
The company boasts an overwhelming competitive advantage through its hybrid service, which combines AI surveillance with effective human intervention.
② TOTO (5332)
is a “dual-track” company operating in both the housing equipment and semiconductor sectors.
While its plumbing fixtures are daily necessities that cannot be replaced by AI, the company’s fine ceramics business produces “electrostatic chucks,” which are indispensable for semiconductor manufacturing, giving it the potential to be a hidden AI-related stock.
③ Mitsubishi Heavy Industries (7011)
is a key national infrastructure company operating in the defense, aerospace, and energy sectors.
In addition to the expansion of the defense budget, the company possesses extremely high barriers to entry and strong growth potential as an infrastructure provider supporting the rapidly increasing demand for electricity in the age of AI.
④ Premium Water Holdings (2571)
is a rare company that owns high-quality water sources at eight locations across Japan.
It operates a subscription-based water dispenser business and has built strong barriers to entry through its proprietary logistics network and water sources.
Even as technology advances, the demand for “water” will never disappear.
Summary: How to Navigate an Era Where the “Winners” and “Losers” Are Divided
- Japan has entered a period of rapid inflation, with prices and stock prices (target of 100,000 yen) rising.
- People who don't own stocks will find it harder to make ends meet due to rising prices and job losses caused by AI.
- To protect your assets, it is essential to invest in stocks.
- Promising options include “SECOM,” “TOTO,” “Mitsubishi Heavy Industries,” and “Premium Water.”
In the Japan of the future, where inflation and the AI revolution are unfolding simultaneously, we are entering an era in which “only those who own assets will prosper.” To avoid being swept away
by these changes, it is essential to adopt a mindset that goes beyond relying solely on earned income and takes the first step toward building wealth.
