When, in 2011, I last came to Japan, the Nikkei 225 index was at the bottom of a long bear market, having fallen by 75% in 22 years. Periodic rallies had not been sustained as, it was commonly agreed, most Japanese companies were not run for profit. Protected from shareholders and predators by cross-holdings, boards focused on themselves and staff loyalty.
Government bonds yielded just 1.25%, the lowest in the world, which seemed absurdly overvalued given Japan’s high government debt relative to the size of the economy. Many had sold bonds short in the expectation of
