The land of the rising sun may be the investor's best bet as a land of rising stock prices, according to a trio of leading advisors.

Japan's current economic expansion is now over 60 months and running, making it the longest expansion in that country in the postwar period according to global advisor expert Carl Delfeld. He says, "Investors should not underestimate Japan's potential - it may be the best growth story in Asia."

The editor of Chartwell Advisor explains, Japanese stocks took a breather in 2006 -- rising 5.5% -- after gaining 35% in 2003, 15% in 2004 and 25% in 2005.

Despite these gains, he notes that the Japanese market is still 60% below its 1989 peak. Is it time to catch up? He says, "Investors should not underestimate Japan's potential - it may be the best growth story in Asia."

Indeed, while many see Xhina as the more exciting growth play, he says, "Japanese companies have long tentacles in emerging Asia, with especially strong networks in Southeast Asia. Plus, in Japan, there is a mountain of cash sitting on the sidelines. Even if just a small amount moves into equities, it will ignite some handsome returns."

Among individual stocks, he likes Kyocera (NYSE:KYO), a large multinational with products and markets that span electronics, fiber optics, and wireless. For broad exposure to the Japanese market, he recommends the iShares Japan ETF (ASE:EWJ), which tracks the MSCI Japan index, which is made up of 350 companies.

Among individual stocks, he likes Kyocera (NYSE:KYO), a large multinational involved in electronics, fiber optics, and wireless. For broad exposure to Japan, he recommends the iShares MSCI Japan (ASE:EWJ), which tracks the MSCI Japan index, which is made up of about 350 companies.

Jim Stack, editor of The InvesTech Market Analyst, is also bullish on Japan, noting that it is an attractive choice to help diversfy a US portfolio since it performance has historically been relatively independent from the U.S. economy.

Like Delfeld, he notes, "2006 was a year of consolidation for Japan, but the outlook appears brighter for 2007." For those seeking exposure to Japan, he recommends mutual funds, and his model portfolios hold the Japan Fund (SJPNX), Matthews Japan Fund (MJFOX) and iShares MSCI Japan (ASE:EWJ).

The first two, he notes are actively managed, whereas EWJ is an exchange-traded fund designed to replicate returns of the overall MSCI Japan index.

He explains, "Of the three, the Matthews Japan portfolio has the lowest average market cap and will likely do best when small-cap domestic companies are rising. The stocks held by EWJ have the largest average market cap and often do well when large-cap exporters and banks dominate performance. The Japan Fund's holdings falls in the middle."

He adds that none of the funds actively hedge currency risk, so in addition to the international exposure, they provide "a good offset to a falling dollar."

Yiannis Mostrous, editor of The Silk Road Investor, adds, "Japan should develop into one of the biggest surprises of the decade. I expect growth to continue as the Japanese economy gradually moves out of deflation while consumers return in strength, thus allowing Japanese firms more pricing power."

Taking a long-term approach to building positions in this market he explains that he will be gradually increase exposure to Japan as the year unfolds. Among individual stocks, he notes, his current favorites are Mitsubishi UFJ Financial Group (NYSE:MTU) and Mitsubishi Heavy Industries (Other OTC:MHVYF).

For more stock picks from the leading financial newsletter advisors, visit Steven Halpern's free daily website, TheStockAdvisors.com.