What You Will Learn
Most individual investors stick to their home market. American investors buy American stocks. Japanese investors buy Japanese stocks. This home bias costs them one of the most powerful tools in investing: geographic diversification. When the US market corrects, Japan or Vietnam may be rallying on entirely different economic drivers. A portfolio spread across markets reduces risk without sacrificing return potential.
Journely covers three distinct markets — the United States, Japan, and Vietnam — each with different economic cycles, sector strengths, and growth characteristics. This tutorial shows you how to explore opportunities across all three, compare sectors globally, navigate currency considerations, and build a truly international portfolio through conversation.
- Market exploration — understand the economic landscape, sector composition, and investment climate of each market
- Cross-market sector comparison — find where each market has a competitive edge
- Currency analysis — understand how USD/JPY and USD/VND exchange rates affect your returns
- Global stock ideas — discover opportunities you would never find in a single-market screener
- International portfolio construction — combine holdings across markets with proper allocation
Step-by-Step: Investing Across Markets
Explore Each Market
Before investing in a foreign market, you need to understand what makes it tick. Each of Journely's three markets has a distinct character: the US is driven by technology and innovation, Japan by corporate governance reforms and manufacturing excellence, and Vietnam by rapid economic growth and demographic tailwinds. Ask Journely for a market overview to build context.
The Japanese equity market (Nikkei 225 / TOPIX) is experiencing a structural renaissance. After three decades of stagnation following the 1989 bubble, Japan is now one of the most compelling equity markets globally.
Corporate governance reform: The Tokyo Stock Exchange's 2023 mandate requiring companies trading below book value to publish improvement plans has been transformative. Companies are increasing dividends, launching buybacks, and unwinding cross-shareholdings. Shareholder returns are at record levels.
Yen weakness: The USD/JPY rate near 150 makes Japanese exporters extremely competitive. Companies like Toyota, Sony, and Keyence earn a significant share of revenue overseas — a weak yen inflates their JPY-denominated earnings. For a USD-based investor, this cuts both ways: you get assets at a discount, but a strengthening yen would boost your returns when converting back.
Sector strengths: Japan excels in precision manufacturing (Keyence, SMC), automotive (Toyota, Honda), semiconductor equipment (Tokyo Electron, Disco), consumer electronics (Sony), and industrial automation (Fanuc). Many of these companies are global leaders with no direct US equivalent.
Key risk: Demographic decline (aging population, shrinking workforce) is a long-term headwind. Mitigated by automation investment and immigration reform.
Vietnam (VN-Index) is a frontier-to-emerging market story. It is where China was 15-20 years ago in terms of economic development trajectory, but with key differences that make it attractive.
Economic growth: GDP growth of 6-7% annually, driven by manufacturing exports, domestic consumption, and foreign direct investment. Vietnam is the primary beneficiary of supply chain diversification away from China — Samsung, Apple, and Intel all have major manufacturing operations here.
Demographics: Population of 100M with a median age of 31. This is the opposite of Japan — a young, growing workforce with rising incomes fueling domestic consumption. Urbanization is accelerating.
Market characteristics: The VN-Index has around 400 listed companies. Liquidity is lower than US or Japan markets. Foreign ownership limits exist for some sectors. The market is being considered for FTSE Emerging Market reclassification, which would trigger significant index fund inflows.
Sector leaders: Real estate (Vinhomes, Novaland), banking (VCB, TCB, MBB), dairy (Vinamilk), technology (FPT Corp), and steel (Hoa Phat). FPT Corp is particularly interesting as Vietnam's largest IT company, growing 20%+ annually with a global outsourcing business.
Key risks: Currency volatility (VND management by State Bank), lower market liquidity, regulatory changes, and corporate governance standards still developing.
Compare Sectors Across Markets
Different markets lead in different sectors. The US dominates software and cloud computing, Japan leads in precision manufacturing and semiconductor equipment, and Vietnam offers exposure to rapid consumer and infrastructure growth. Comparing sectors across markets reveals opportunities you would miss by staying in one market.
United States — Design and software: The US dominates semiconductor design (NVDA, AMD, AVGO, QCOM) and EDA tools (SNPS, CDNS). These are high-margin businesses at the top of the value chain. Most richly valued (average forward P/E 30-45x) but justified by AI-driven demand growth.
Japan — Equipment and materials: Japan owns the semiconductor equipment and materials supply chain. Tokyo Electron (8035.T) makes wafer fabrication equipment, Disco (6146.T) specializes in wafer grinding and dicing, and Shin-Etsu (4063.T) is the world's largest silicon wafer maker. These companies are essential regardless of which chip designer wins — they are the picks and shovels of the AI gold rush. Valued at 20-30x forward earnings.
Vietnam — Assembly and testing: Vietnam is emerging as a semiconductor assembly, testing, and packaging hub. Intel's largest global test and assembly facility is in Ho Chi Minh City. Samsung is building a $4B chip packaging facility. The direct play is limited to FPT Corp (technology services) but the broader infrastructure and real estate sectors benefit from fab construction.
Investment angle: A diversified semiconductor allocation across all three markets captures the entire value chain — design (US), equipment (Japan), and manufacturing (Vietnam). This is impossible to achieve in a single market.
Why Cross-Market Analysis Creates Edge
Most retail investors only know their home market. A US investor might buy NVDA for AI exposure but completely miss Tokyo Electron, which supplies the equipment NVDA's chip fabrication partners need. By looking across markets, you find opportunities in the same theme that are less crowded and often cheaper.
Understand Currency Considerations
When you invest in foreign stocks, you take on currency risk (or opportunity). A Japanese stock might return 10% in JPY, but if the yen weakens 5% against the dollar, your USD return is only 5%. Conversely, a strengthening yen would amplify your return. Ask Journely to analyze currency dynamics and their impact on your international positions.
USD/JPY (currently ~150): The yen is historically weak. The Bank of Japan has begun normalizing interest rates (ending negative rate policy), which should support gradual yen strengthening over the medium term. Consensus forecasts suggest USD/JPY moving toward 140-145 over the next 12 months.
Impact on your Japan holdings: If the yen strengthens from 150 to 140 while your Japanese stocks return 8% in JPY terms, your USD return would be approximately 15% (8% stock appreciation + 7% currency gain). A strengthening yen is a tailwind for USD-based investors in Japanese equities.
USD/VND (currently ~25,000): The Vietnamese dong is managed by the State Bank of Vietnam with a trading band. The VND has been relatively stable, depreciating 2-3% annually against the USD. This gradual depreciation is a small headwind to returns but is offset by Vietnam's higher nominal growth rates.
Practical consideration: For a moderate allocation (10-15% in Japan, 5-10% in Vietnam), currency risk adds portfolio volatility but also adds diversification. Over long periods, currency effects tend to wash out. Hedging is expensive and usually not worthwhile for individual investors with 10+ year horizons.
Cross-Market Stock Analysis
Once you understand the market landscapes and currency dynamics, use Journely to compare specific stocks across markets. This is particularly powerful for identifying the same theme across different geographies — often at very different valuations.
Toyota (7203.T) — $280B market cap. The world's largest automaker by volume. Hybrid strategy (not pure EV) is proving prescient as the EV transition takes longer than expected. Revenue growth 12% YoY, operating margin 11.2%, forward P/E 10x. Trading at a steep discount to Western automakers. The corporate governance reforms are unlocking value through buybacks and dividend increases. Low risk, moderate return potential.
Tesla (TSLA) — $780B market cap. The EV market leader but facing margin pressure from price cuts and growing competition (BYD, Rivian). Revenue growth 8% (decelerating), operating margin 8.5% (down from 17% two years ago), forward P/E 62x. Valuation assumes success in FSD, Robotaxi, and energy storage. High risk, high potential reward if optionality plays out.
VinFast (VFS) — $9B market cap. Vietnamese EV maker backed by Vingroup. Pre-revenue profitability — still burning cash. Selling approximately 10,000 vehicles per quarter with ambitions for US and global expansion. Extremely speculative. This is a 5-10 year bet on Vietnam's manufacturing capabilities and domestic EV adoption.
Assessment: Toyota offers the best risk-adjusted return. At 10x forward earnings with the world's strongest automotive brand and a pragmatic powertrain strategy, it is the value play. Tesla is the growth/optionality play at a premium valuation. VinFast is a speculative bet best sized as a small allocation if you have high conviction in Vietnam's long-term development.
Build a Global Portfolio
With market context, sector analysis, and currency understanding in place, ask Journely to help you build a multi-market portfolio. The AI balances geographic diversification with your risk tolerance, accounts for currency exposure, and ensures the positions complement each other rather than duplicating risk.
US Allocation (60% = $18,000):
MSFT $4,000 — Cloud + AI platform. The most diversified big tech name. GOOGL $3,500 — Search + cloud + Waymo. Cheapest mega-cap on a P/E basis. V $3,000 — Payment network with 50%+ margins. Global commerce tollbooth. UNH $3,500 — Healthcare compounder with demographic tailwinds. AVGO $2,000 — Semiconductor + infrastructure software. AI networking leader. Cash reserve $2,000 — Opportunity fund for pullbacks.
Japan Allocation (25% = $7,500):
Toyota (7203.T) $2,500 — Global automotive leader at value pricing. Tokyo Electron (8035.T) $2,500 — Semiconductor equipment. Picks and shovels for the AI buildout. Keyence (6861.T) $2,500 — Factory automation sensors. 55% operating margin. One of the highest-quality industrials globally.
Vietnam Allocation (15% = $4,500):
FPT Corp (FPT) $2,000 — Vietnam's largest IT company. 20%+ revenue growth with a global outsourcing business expanding into AI services. Vietcombank (VCB) $1,500 — The largest and most profitable Vietnamese bank. A proxy for Vietnam's economic growth with the strongest balance sheet in the sector. Vinamilk (VNM) $1,000 — Dominant dairy company with 55% domestic market share. Consumer staple benefiting from rising incomes and young demographics.
Portfolio characteristics: 11 holdings across 3 markets. No single position exceeds 13% of the portfolio. Sector mix: Technology 32%, Industrials 17%, Healthcare 12%, Financials 12%, Consumer 10%, Automotive 8%, Cash 9%. Average correlation between the three market clusters is 0.3 — genuine diversification.
Starting Small with International Markets
If you are new to international investing, start with a small allocation (10-15% of your portfolio) in one foreign market before expanding. Japan is often the easier entry point for US investors — high liquidity, strong corporate governance, and established blue-chip companies. Vietnam is higher risk and better suited for investors comfortable with frontier market dynamics.
Key Takeaways
- Home bias is a real cost — investing only in your home market means missing opportunities and accepting higher concentration risk. Geographic diversification is one of the few free lunches in investing
- Each market has a character — the US leads in software and innovation, Japan in precision manufacturing and corporate reform, Vietnam in demographic growth and manufacturing shift. Understanding these strengths guides allocation
- Currency is a feature, not a bug — for long-term investors, currency exposure adds diversification. A weakening dollar (which is entirely possible over a 10+ year horizon) would amplify returns on foreign holdings
- Same theme, different valuations — the AI semiconductor theme can be played through US design companies at 35x earnings or Japanese equipment makers at 22x earnings. Cross-market analysis reveals pricing inefficiencies
- Size positions to risk tolerance — higher-risk markets (Vietnam) deserve smaller allocations. A 60/25/15 split across US/Japan/Vietnam provides meaningful international exposure while keeping the majority in the most liquid market