Time to be bull on the market after years of disappointment

Is the economy really going to pick up after years of false dawns? Investors outside Japan think so. Volumes on the Tokyo stock exchange hit record highs on successive days in the wake of Koizumi's recent re-election, largely thanks to buying by overseas investors. Enthusiasm has propelled share prices back up to levels not seen since early 2001. By contrast, domestic investors remain more cautious. Who is right? We side firmly with the bulls. Despite its recent gains, the Topix still has further to run, and may reach 1,600 by the end of this year. But our positive outlook is not a respons...