The Topix is trading at 18x forward earnings (well above the historical 12-16x range) and the Nikkei is at 24x. Defense stocks have not outperformed despite the PM's election win. Valuation expansion has outpaced earnings growth. The "good news" (political stability, inflation return) is fully priced in. When "momentum stocks" (defense) lag despite favorable policy news, it often signals buyer exhaustion. NEUTRAL/AVOID. Risk/reward is poor at multi-decade high valuations. A continued weak Yen (breaking 155) could artificially boost exporter earnings further.