Welcome to Insider Trades Daily, glad you're here! Every day, more than 500,000 investors use this newsletter to track insider buying and selling across major public companies. It’s a simple way to see what the people closest to the business are doing with their own money. Before we start sending your daily updates, there’s just one quick thing left to do. Please confirm your subscription using the link below. Click Here to Confirm Your Subscription to Insider Trades Daily It takes a few seconds and helps make sure your newsletter shows up where it belongs, your inbox, not a spam folder. Once you’re confirmed, we’ll take it from there and deliver clear, no-nonsense insider trading insights straight to you. Start Receiving Insider Information The InsiderTrades.com Team P.S. If there's anything we can do to improve your experience, please let us know by replying to this email.
This Week's Bonus Story
Japan's Stealth Bull Market: How U.S. Investors Can Get ExposureWritten by Chris Markoch. Publication Date: 5/17/2026. 
Key Points
- Japan’s corporate governance reforms are driving stronger shareholder returns through buybacks, dividends, and improved capital efficiency.
- ETFs like EWJ and DXJ provide investors with different ways to gain exposure to Japanese equities, including currency-hedged strategies.
- Sony and Toyota offer contrasting opportunities, with Sony focused on diversified technology growth and Toyota representing a higher-risk turnaround play.
- Special Report: Have $500? Invest in Elon’s AI Masterplan
Japanese stocks have been an attractive option for investors seeking exposure outside of U.S. equities. Several factors have driven the multi-year rally, including corporate governance reform, record shareholder returns, and a weak yen. The governance overhaul began with Japan's Stewardship and Corporate Governance Codes in 2014–15. This pushed companies to prioritize shareholder value over old habits like cash hoarding and cross-shareholdings, where companies held each other's stock to cement business relationships rather than generate returns.
Goldman Sachs just revealed that 40% of AI data centers will be crippled by electricity shortages by 2027 - not chips, not funding, but power. Demand is growing 15% per year and the grid can't keep up.
One small company makes the exact equipment these data centers need. They're sitting on $1.5 billion in orders, their hardware is already inside Musk's Colossus, and the stock still trades like a name nobody's heard of. Analyst Dylan Jovine is releasing the ticker for free. See the stock positioned to solve AI's biggest power crisis
More than a decade later, the overhaul has produced tangible results: more than 90% of listed companies now have meaningful independent board representation. In addition, the Tokyo Stock Exchange has ramped up pressure by threatening to delist companies that fail to meet capital efficiency standards. This pressure has unlocked a wave of shareholder returns. Share buybacks have risen nearly 6x over the past decade; dividends have doubled, and companies are increasingly canceling repurchased shares outright rather than warehousing them. The weak yen has amplified the story. Having lost roughly a third of its trade-weighted value over four years, the yen has boosted the overseas earnings of Japanese exporters and made Japanese assets more attractively priced for foreign buyers, drawing record foreign inflows in 2025. Has the Japan Trade Run Its Course?Not yet, but there are some risks. The primary concern would be a recovery in the yen, which would squeeze exporter margins. Valuations are also less compelling than they once were. And despite the progress that’s been made, many companies are still dragging their feet on reform. These are short-term concerns in a long-term bull market. Japan’s equity market is in the midst of a structural shift that should continue to make it compelling for long-term investors. iShares MSCI Japan ETF Offers Broad Exposure to JapanMany investors will choose exchange-traded funds (ETFs) as a way to gain exposure to Japanese stocks. One option is the iShares MSCI Japan ETF (NYSEARCA: EWJ). The fund invests in a representative sample of securities that are part of the MSCI Japan Index. The fund has 184 holdings, but the key is that its portfolio is weighted toward technology and industrials. These sectors face headwinds from the closure of the Strait of Hormuz, but they also stand to benefit the most from any reversal. EWJ is up 12% in 2026 as of this writing. It’s also up 25% over the last 12 months and 35% over the last five years. That performance isn’t bad, but it does reflect the impact of a weakening yen. The fund does have an expense ratio of around 0.5%, which is considered expensive. But it has over $21 million in assets under management (AUM) and an average daily trading volume of around nine million shares. WisdomTree Japan Hedged Equity Fund Removes Currency RiskThe WisdomTree Japan Hedged Equity Fund (NYSEARCA: DXJ) takes a different approach that investors may appreciate. The fund gives U.S. investors exposure to Japanese equities while hedging out the yen-dollar exchange rate. That removes the drag of yen fluctuations, which shows up in the fund’s performance. DXJ is up over 50% in the last 12 months and an impressive 185% over the last five years. What may be even more attractive to investors is the fund’s structure. It focuses on dividend-paying, export-oriented Japanese stocks that are typically associated more with value than growth. The fund has an expense ratio of 0.48% and over $6.6 billion in AUM as of this writing. Sony Balances Growth Opportunities With Near-Term ChallengesInvestors considering single-stock exposure would do well to consider Sony Group (NYSE: SONY). The stock is up almost 500% over the last five years, though it’s down over 10% in 2026. That reflects the diverse nature of the company’s business, which spans consumer electronics, gaming hardware, an electric vehicle venture, and audio intellectual property. SONY delivered mixed Q4 earnings for its 2026 fiscal year on May 7, with a beat on revenue offset by lighter-than-expected earnings per share. The company will also face pressure from rising memory costs and a supply shortage. That’s one reason why analysts may have a Hold rating on the stock. But at 17x forward earnings, Sony remains a solid choice for long-term growth and value. Toyota Could Be a Contrarian Opportunity in Japanese StocksToyota Motors (NYSE: TM) is the asymmetric play among Japanese stocks. TM is down 10% year-to-date and is only up about 20% over the last five years. That reflects the issues that have beset the auto industry. Toyota delivered mixed results in its Q4 earnings for its 2026 fiscal year. Moving forward, the company still expects tariff headwinds. It also acknowledged that its business transformation initiatives aren’t complete, which leaves unclear when it will reach its goal of 20% ROE (return on equity). That said, TM still has a consensus price target of $290, which would give investors a gain of over 50%. There’s a lot that has to go in the company’s favor, but for investors willing to accept the risk, there could be a market-beating return. |
Post a Comment
Post a Comment