Nikkei 225

The Nikkei 225 is the best-known Japanese stock index and comprises 225 of Japan's largest listed companies.

Well-known companies in the Nikkei: Toyota, Sony, Honda, Nintendo, SoftBank, Panasonic, Canon, Mitsubishi, Fast Retailing (Uniqlo).

What makes Japan special:

The Nikkei reached an all-time high of 38,916 points in 1989 – and then needed 34 years (until 2024!) to reach that level again. In the meantime: deflation, stagnation, zero interest rates – the "lost decade" turned into three lost decades.

Lesson for investors: Japan shows that even in a rich industrialised country, it can take decades to recover from a stock market crash. That's why: diversify globally (MSCI World), don't bet on just one country.