["Barron's Digest"]
November 23, 2025
The first "cover story" is a roundtable discussion on European stocks. The MSCI Europe Index has risen 27% year-to-date this year, significantly outpacing the 12% gain of the S&P 500, signaling the potential end of more than a decade of U.S. stock dominance. Roundtable participants emphasized the investment appeal of European companies driven by interest rate normalization, increased fiscal spending, and innovation centered around AI, introducing 12 notable stocks. While there are no mega-cap technology stocks like U.S. platform companies in Europe, an exception is ASML Holding, known for its extreme ultraviolet lithography systems. Additionally, LVMH Moët Hennessy Louis Vuitton represents a globally unique European stock. Other highlighted stocks include financials and pharmaceuticals that may be valued as value stocks. However, having observed European stocks from afar for many years, I remain hesitant to invest.
The second “Feature” introduces the preferred shares of Strategy <MSTR>, a company that holds Bitcoin as part of its business strategy. As Bitcoin surged, the company’s stock price also skyrocketed, reaching $500 by the end of last year. However, it has recently fallen to about one-third of that value. The article notes that the four preferred shares issued by the company now offer yields of 10-15%, which could be worth considering for those willing to take on the risks. Preferred shares are popular among individual investors due to their bond-like characteristics and attractive fixed dividend yields. In this case, however, Japanese retail investors may not need to consider investing, but for reference, here are the ticker symbols and nicknames of the preferred shares: <STRC> is Stretch, <STRD> is Stride, <STRF> is Strife, and <STRK> is Strike.
The third “Feature” discusses suspicious ultra-small cap stocks rising in the Nasdaq market. Among stocks based in Caribbean tax havens, there have been frequent cases of extreme surges followed by sharp collapses, raising suspicions of market manipulation. Regulatory authorities are stepping up their responses. These stocks might be considered similar to what is referred to as “manipulated stocks” in Japan or “meme stocks” in the U.S., though their nature may be even more problematic. The article uses the example of Pheton Holdings <PTHL>, a Chinese healthcare stock. While these companies can list if they meet formal criteria, the market remains a mix of good and bad. Japanese retail investors should avoid these stocks.
The fourth “Feature” is an article offering a favorable evaluation of the Trump administration’s policies. During Thanksgiving family gatherings, harsh criticisms of President Trump may arise. However, when objectively assessing his policies from a different perspective, the author argues that they are not entirely negative. The article suggests that the strong stock market performance is less a result of policy and more a windfall from the AI investment boom. For specific evaluation points, please refer to the article.
The sixth “Economic Policy” piece argues that as expectations for U.S. interest rate cuts grow, global investors should not only focus on the Federal Reserve (FRB) but also closely monitor Japan’s policies. Japan’s ultra-low interest rates and large-scale quantitative easing have historically placed downward pressure on global bond yields. However, heightened expectations for expansionary policies under the Masuda administration have led to a weaker yen and a surge in Japanese long-term government bond yields. Consequently, Japanese institutional investors have lost incentives to invest in foreign bonds. The article suggests that Japan’s policy shift could alter global capital flows, but questions whether the impact will be as significant as implied.
The ninth “Investment Strategy” analyzes NVIDIA <NVDA>, which pays small dividends, and the declining dividend yield trend of the S&P 500 Index. NVIDIA, which went public in January 1999, paid its first dividend in 2012 and has since increased its payout slightly every November. After stock splits, its current quarterly dividend stands at $0.01 per share, resulting in a dividend yield of just 0.0002%, the lowest among S&P 500 constituents. The article links NVIDIA’s dividend with the S&P 500’s declining dividend yield, which has fallen to 1.1%, speculating that dividend-paying stocks may soon regain attention. However, this analysis feels unconvincing.
The column in the first half of item 10, "Economic Schedule," features Disney, which aims to turn around its recent lackluster performance by focusing on its cruise ship business. The company’s stock price has fallen 6.4% year-to-date, lacking vitality. Last year, Disney introduced the cruise ship "Treasure," and this week it launched the "Destiny." Additionally, the company plans to debut its largest new ship, the "Adventure," in March next year. This division is expected to become a focal point for the company alongside its streaming business next year. Whether Disney can regain its luster this time remains to be seen.
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