Young Japanese who rode AI boom flaunt wealth with luxury buys

Japan's stock market surge, driven by the AI frenzy, is empowering young investors to flaunt their newfound wealth with lavish purchases. The benchmark Nikkei 225 index has climbed over 30% in 2026, with many first-time investors benefiting from a government-backed tax-free savings program. Young shoppers are now channeling their investment returns into luxury items like jewelry and sports cars, indicating a significant shift towards conspicuous consumption. Taisei Tateno, a 27-year-old entrepreneur who invested his business sale proceeds into stocks, recently bought a Porsche for 20 million yen. "Since launching my business at 19, I’d dreamed of being able to live lavishly," Tateno said, inspired by self-made billionaires. This spending spree, while boosting the retail sector, also exposes a deepening societal divide. While the stock rally creates a cohort of nouveau riche, those with fewer assets are being left behind. Japanese households' unrealized equity gains have surged by approximately 150 trillion yen in real terms over the past three years, according to SMBC Nikko Securities analysts. A survey by SMBC Nikko found that 35% of investors aged 20 to 29 reported spending or planning to spend their gains on luxury purchases, the highest proportion among all age groups. Common spending areas include clothing, accessories, recreation, and travel. Retailers are responding to this trend, with brands like Happiness and D launching new lines with larger, more ostentatious designs to appeal to younger clientele.

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If you’re properly exposed to the market, anyone can get comfortably rich.