In November, I told you to buy Japanese stocks…

I said they were cheap, ignored, and in a new uptrend.

“With these three things in place,” I wrote at the time, “we have everything we look for in an investment.”

Since then, we’ve seen a HUGE move in the Japanese stock market. It’s up 30% in just three months!

[ad#Google Adsense 336×280-IA]If you aren’t already investing in Japanese stocks, you haven’t missed it.

Japan is still my favorite investment idea for 2013, and we still have big upside potential.

In fact, recent comments from one of Japan’s leaders suggest Japanese stocks could be 16% higher in just weeks.

Let me explain…

“We want to continue taking (new) steps to help stock prices rise,” Japan’s Economic and Finance Minister Akira Amari said last weekend.

Japan’s government is taking its boldest steps of economic stimulus in decades… including giving specific stock market targets. Amari said, “It will be important to show our mettle and see the Nikkei reach the 13,000 mark by the end of the fiscal year [March 31, 2013].”

Akira is expecting a 16% gain in the next six weeks! And that’s AFTER a huge move in the Japanese market over the past few months. It’s crazy!

A 16% increase by the end of March would mean a 50% gain in Japanese stocks in under five months. Japan’s Nikkei Index has NEVER increased that far, that fast, in over 40 years.

Why all the excitement?

What’s happening in Japan is what I call “Abe’s Revenge”…

I gave my True Wealth subscribers the full story in December. In that issue, I recommended buying shares of the WisdomTree Japan Hedged Equity Fund (NYSE: DXJ)… My readers are already up 11%. But “Abe’s Revenge” is just getting started…

The basic idea is simple.

You see, in September 2007, the unpopular Shinzo Abe resigned as Japan’s leader. After his resignation, the Nikkei fell by half. And the Japanese yen soared 40% versus the U.S. dollar. But now, Abe is back for his revenge…

He was elected Japan’s Prime Minister last fall on a simple platform… He’s going to do anything necessary to spur Japanese inflation, lower the value of the yen, and kick-start the Japanese economy.

He wants to do what Federal Reserve Chairman Ben Bernanke is doing in the U.S. – multiplied by 10. (Bernanke has cut interest rates to zero – and has been printing money. Bernanke is fueling the “Bernanke Asset Bubble,” which has the potential to be the greatest asset bubble in history.)

With a two-thirds majority, Abe can basically do what he wants in the government now. And what he wants is to create massive inflation – to bust Japan’s 30-year bout with deflation for good.

So far, Abe is succeeding. The Japanese yen has fallen 17% against the U.S. dollar since September. And the Nikkei has gone from multi-year lows to near five-year highs.

This trade is working out exactly like we planned. Abe and his friends are doing whatever they can to devalue the yen and send Japanese stock prices much, much higher. And after Amari’s recent comments, it is obvious Japan’s leaders have no plans of slowing down.

With Abe in power, our upside in Japanese stocks remains enormous. The DXJ is the best way to invest in Japan. And it’s currently a “buy” in my True Wealth newsletter.

If you don’t own Japanese stocks, I suggest you pick up shares of DXJ now. As I said, Japan is my favorite investment for 2013. And our gains are just getting started.

Good investing,

Steve

[ad#stansberry-ps]

Source: DailyWealth