What is "Click Stock 365" that trades stock indices to aim for asset doubling?

Do you know a product called “Click Stock 365”?

“Click Stock 365” is a product similar to FX’s Click 365 operated by the Tokyo Stock Exchange,

and the asset to trade is a “stock index.”

The indices that can be traded are currently the Nikkei 225, the NY Dow, the DAX (Germany), and the FTSE 100 (UK),

and in fact these four countries alone account for about 80% of the world’s advanced stock markets.

In other words, with these four indices, you can almost cover advanced-country stock index investments.

The merit of “Click Stock 365” is not only that. The biggest merit is that the costs are low.

During holding a position, the cost is based on the unsecured call next day interest rate, so

when trading the Nikkei 225, you are essentially in a zero-cost state right now.

This means you can manage indices at a lower cost than with index funds or ETFs.

Also, with “Click Stock 365,” there is almost no foreign exchange risk when trading the NY Dow, which is

another attractive point.

The Japanese yen used to trade around 140 per dollar about 30 years ago, but now it is around 112, having strengthened by about 20%.

Meanwhile, the NY Dow rose from around 2,600 to around 24,000 dollars. The increase rate is about 923%.

The NY Dow has risen about tenfold, or 923%, over 30 years, but what would happen if you had traded the NY Dow in yen?

If you do the calculation (Note 1), the increase rate would be 700%. Investing in the NY Dow in yen would have created a差 of more than about 200% by hedging in yen.

Forex is said to move in the long term according to the Purchasing Power Parity theory. Japan is in a deflationary state, and the US experiences weak inflation. In other words, in the long term, the relationship between dollar and yen is likely to continue to move toward yen appreciation.

In other words, investing in the NY Dow in USD is likely to be more advantageous over the ultra-long term than investing in USD in yen, but of course future circumstances could change.

In this sense, not having to consider exchange rate fluctuations when actually trading is easy to understand and reassuring.

Moreover, since “Click Stock 365” is a margin trading product, you can use leverage. However, because the asset you trade is a stock index, you should proceed cautiously.

Nevertheless, stocks as an asset are said to be a plus-sum game. Fundamentally, if you hold them, everyone tends to profit, which is appealing.

In the earlier example, simply holding the NY Dow for 30 years would yield about 10 times your money. And as I mentioned, the 923% figure does not include income from dividends. If you reinvest dividends over 30 years, the actual asset would have grown even more.

Low cost and leveraged trading. And there is no expiration like futures or options, so ultra-long-term holding is possible. With all these conditions in place, asset doubling is not a dream, is it?

（Note 1）Suppose that 1 million dollars invested in the NY Dow 30 years ago became tenfold and reached 10 million dollars. 30 years ago, the dollar was about 140 yen, so when converted to yen, you would have invested about 1.4 million yen. And now, 30 years later, with the dollar at 112 yen, converting the NY Dow to yen would be 10 million dollars × 112 yen = 11,200,000 yen.

and

therefore

it would be 11,200,000 yen.