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Adam149 published in Finance

Why Japanese investors are turning to US stocks

Japan has the third-largest economy in the world, following closely behind China and the US. As Japanese investors venture beyond investing in domestic stocks, many have flocked to US stocks. This is no surprise, as the US and Japan have always had a good diplomatic relationship.

In this article, we’ll talk a bit about the Japanese foreign stock market. We will also discuss why US stocks are flourishing in Japan, the advantages of trading US stocks, as well as how you can start trading US stocks as a Japanese investor.

The foreign stock market in Japan

In Japan, the biggest foreign stock market is the Tokyo Stock Exchange (TSE), which has been proactively engaged with foreign stocks since the establishment of its foreign stock market in 1973.

US stocks on the TSE consist of two categories: ‘blue chip’ companies that are created and listed on US stock exchanges, as well as US companies that are listed on the TSE. All trading takes place with assets bought and sold in the Japanese yen.

Why would Japanese traders invest in US stocks?

The US stock market is popular with Japanese traders for the same reasons they are popular with international traders in general. The two main reasons are that the US stock market is huge and highly liquid, and the second is that Japanese investors can diversify their portfolio.

  1. The US stock market is huge

US stocks are some of the most traded in the world, and the US stock market is highly liquid. This is because the US economy is among the world’s largest.

By investing in US stocks, Japanese investors can gain exposure to the growth of the US market and potentially profit from it. They can also get the chance to invest in leading ‘blue chip’ companies around the world in various sectors and capitalise on high growth companies in the US.

  1. Portfolio diversification

Japanese traders may also choose to invest in US stocks to diversify their portfolio across geographies. By investing in overseas stocks, Japanese traders can reduce risk in their portfolio in case the Japanese stock market takes a dip.

Advantages of trading US stocks in Japan

One of the main advantages is that US stock trading is very commonplace in Japan, and investors can find stock price information in daily newspapers, financial journals, and also on the news on TV. US stock traders in Japan will never lack for information. They can also easily access charts and news with their respective brokers.

Another advantage of trading US stocks in Japan is that they can be traded in the same manner as local Japanese stocks. Stock orders can be executed on a real-time basis, and orders can be placed easily on trading platforms. Even the daily price limits of US stocks are the same as local Japanese stocks. This makes it very easy for local traders to take up US stock trading.

Additionally, foreign stocks such as US stocks can be traded in the Japanese yen. This saves the hassle of converting currencies, and it can also minimise risk for traders as they avoid potentially unpleasant currency exchange rates.

On top of that, traders will find that US stocks can be traded with a relatively small amount of principal. This depends on the broker and the rates they issue, but it is entirely possible to start investing with only JPY 100,000.

Finally, annual reports and breaking news of US companies listed on the TSE are usually available in Japanese. When investing in stocks, it is crucial that an investor has adequate knowledge of the company they are purchasing a share of. Japanese investors can usually access disclosure materials in both Japanese and English.

Potential risks of trading US stocks in Japan

One of the main disadvantages of trading US stocks in Japan is the time difference between the two countries. Japan is about 13 hours ahead of the East Coast and 17 hours ahead of the West Coast. This is a substantial difference, and Japanese investors may find it hard to keep up with breaking news in the US during the day. Breaking news can impact the performance of individual stocks and the stock market, which Japanese traders may miss.

Another disadvantage of trading US stocks in Japan is that you have to be a Japanese citizen to open a trading account with some of the leading domestic banks. For example, neither Fidelity Japan nor Citibank Japan allow US citizens to open investment accounts with them. Rakuten, SBI, and Monex allow US citizens to open accounts with them but have limitations on the products they can trade – they can trade Japanese stocks but not US ETFs. When in doubt, foreign investors residing in Japan may want to contact international providers with a Japanese presence instead.

How Japanese investors can get started trading US stocks

The TSE has made it relatively simple for Japanese investors to trade US stocks. Below are steps that as to how traders can participate in the US stock market:

  1. Open a trading account — Japanese investors can seek out domestic brokers that provide access to global markets. Note that many local brokers focus on serving clients in Japanese only, and they usually do not provide services in English. Some also, as mentioned, do not allow foreign citizens to open trading accounts. For foreign investors in Japan who prefer to communicate in English, they can open an account with an international broker with a Japanese presence. These include Saxo, Interactive Brokers, and Fidelity.
  2. Fund your account — After verifying your account with legal documents, you should also check if there is a minimum balance your broker requires of you to deposit into your account.
  3. Decide which stocks you would like to trade — You should also do your due diligence and check if there are any minimum purchases for the companies in which you intend to invest.
  4. Start trading — You can open a position when you have decided on the shares you would like to trade. Remember to set any stop-loss orders when you open your trade, and you should monitor the markets closely.

The bottom line

Trading US stocks in Japan is relatively straightforward, and anyone interested can give it a go. Just remember to understand your own risk tolerance before you start making trades and never risk more than you can afford to lose. If you are new to trading, you can also start with a demo account to learn the ropes of your trading platform first.

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ArticlesClick published in Entertainment, Fashion, Media, Social Media

How to Take the Perfect Profile Picture

In the digital age, profile pictures count. As the first impression you give friends and potential followers, it is vital it’s flattering and representative, but it’s not always easy to get a photo that captures your personality. Whether you’re looking for a picture for a dating profile or for the latest social media app, you want to look at your best.

Below are five tips to ensure your profile pictures stand out from the crowd.

Good Lighting

Lighting can make or break a photo, so take time to make it work for you. Whether you let natural light do the heavy lifting or cheat with the help of a fluorescent ring light, make sure the light faces you front on to avoid overexposure. For a dramatic result, go bright or opt for a more natural glow with softer light. If you wear glasses, check for reflections in the lenses or the dreaded glare.

Dress to Impress

If you want a headshot, what you are wearing will be less important than if you are hoping to capture a full-length shot (headshots are generally a better choice for a profile picture, as it can be difficult to see details of a full-length shot in a thumbnail), but you can still showcase your personality from the neck up. Makeup, hats, and accessories can make a bold statement.

Plain and Simple

Although it can be tempting to have a striking backdrop, a plain colour is a better choice. You should be the centerpiece of your profile picture and a light-colored background is flattering and ensures you are the main attraction. Think of the actor and model headshots you see and you’ll notice how effective the simple background can be.

Looking Great

Decide what you want your photo to say. If you are staring straight into the camera, your image will portray that of a confident, assured individual. Depending on your facial expression, it might be alluring or may be aggressive. Looking beyond the camera or down to the floor can display a thoughtful or coy demeanour. Your expression changes your whole look, so try a variety of poses to find one that best represents you.

Filter-Free

Filters are commonplace on social media but consider whether the effects you are adding are benefitting your photos. If your photo will be seen by your boss, family, or potential dates, do you really want it to have kittycat ears and whiskers? Even ‘beauty’ filters designed to widen eyes or smooth skin can look false. Instead of using filters, try changing the brightness, sharpness, or saturation by uploading photoshop to the Lenovo laptop you use for schoolwork. This improves images without contorting features. Your profile picture should look like you, not a cartoon version of you!

Whatever you choose, you should feel comfortable and relaxed – a profile picture should encapsulate your essence. While you don’t have to smile on your profile picture, do consider that a happy resting face is seen as healthier and more attractive.

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John Madrigal published in Business

How Do Residential Land Surveys Work in Calgary?

Calgary is one of the world’s most livable cities because of its cleanliness, affordable cost of living, and lucrative job market. Given all these reasons, it is no surprise that many people choose to find a home and settle in this city. Or, for others, they see Calgary as an excellent location to invest in and sell land or property.

Regardless, buying or selling land and property is a significant decision that you should think about carefully. When it comes to these real estate transactions, you should work with residential land surveyors in Calgary before finalizing anything. Read on to learn more about how land surveys work in Calgary and why they are critical when making property decisions.

What are Residential Land Surveys?

Residential land surveys are comprehensive documents outlining the measurements of a property’s lot lines. These include the dimensions and location of a property and its surrounding structures, including easements and encroachments. More importantly, the survey will also identify the property’s boundary lines to prevent legal disputes from arising later on.

To create these surveys, residential land surveyors in Calgary may use different techniques. In most cases, they start by researching the property and land in question, then looking up the title deed to identify the rightful owner. After verifying this, they will sketch and map out the property’s land and boundaries to get the correct details and measurements.

Professional surveyors use advanced equipment and tools to streamline surveying and increase data accuracy. Some popular technologies include laser scanning, uncrewed aerial vehicles (UAVs), and geographic information systems (GIS) to help surveyors gather large volumes of data at a more granular level. They can also get a closer look at the land through scanners, which can reach narrow areas.

Benefits of Getting Professional Land Surveys

Residential land surveys are generally a staple in property development projects or real estate matters. However, if you are not familiar with them, here are the main benefits of getting a survey before buying or selling property in Calgary:

Know What You Are Buying

In the case of buyers, land surveys are essential to help you understand what exactly you are buying. Aside from confirming a property’s measurements and legal boundaries, you should also assess topographical details to know whether an area is a flood-or-disaster-prone.

This way, you get a complete picture of the property and can make more informed decisions about your purchase.

Determine Optimal Value for Property

Similarly, in the case of sellers, land surveys allow you to look at your property to avoid under-or overvaluing it. Property owners often forget to consider factors like landscape, hardscape, and topography in their pricing decisions. Thus, residential land surveyors in Calgary can help in this regard.

Locate Boundary Lines

One of the main benefits of residential land surveys is locating boundary lines. It is imperative to clarify who owns what part of a particular parcel of land since you can quickly build something that infringes on your neighbor’s property. So, by knowing where your property’s boundaries lie, you can prevent these disputes.

Overall, residential land surveys are essential to assess land or property in more detail. Regardless of whether you are the buyer or seller, the last thing you want is to run into legal disputes or price your property poorly for not knowing the specific details related to the asset. To avoid such situations, make sure to work with a reputable land surveyor in Calgary to help you out.

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