Net worth ballooning due to exchange rate

[RetireJapan]

Just updating my monthly spreadsheet and it seems like our net worth is up 60%+ in yen terms since December 2020.

Absolutely insane. Most of that is from the exchange rate.

103 JPY on 30 Dec 2020
139 JPY on 28 Jul 2023

I have no idea what to do here, so I will do nothing and just carry on with the plan

[TokyoBoglehead]

Just updating my monthly spreadsheet and it seems like our net worth is up 60%+ in yen terms since December 2020.

Absolutely insane. Most of that is from the exchange rate.

103 JPY on 30 Dec 2020
139 JPY on 28 Jul 2023

I have no idea what to do here, so I will do nothing and just carry on with the plan

There's nothing really to be done unless you want to speculate on Japanese assets specifically. Stocks, real estate, etc. (I wouldn't).

I think we're best to ignore it. I believe things will even out more as the US starts to ease rates in the months/year to come.

I fear for some piling into the Nikkei/Topix that easing US rates will pop a bit of a bubble. They may be picking up nickles in front of a steamroller, as some have phrased it.

[Tkydon]

Just updating my monthly spreadsheet and it seems like our net worth is up 60%+ in yen terms since December 2020.

Absolutely insane. Most of that is from the exchange rate.

103 JPY on 30 Dec 2020
139 JPY on 28 Jul 2023

I have no idea what to do here, so I will do nothing and just carry on with the plan

There's nothing really to be done unless you want to speculate on Japanese assets specifically. Stocks, real estate, etc. (I wouldn't).

I think we're best to ignore it. I believe things will even out more as the US starts to ease rates in the months/year to come.

I fear for some piling into the Nikkei/Topix that easing US rates will pop a bit of a bubble. They may be picking up nickles in front of a steamroller, as some have phrased it.

Yes, there may not be much you can do to hedge the Forex Risk going forward.

Options:

1. If the money is in unhedged funds in Japan, you could try to switch to currency hedged versions to lock in the exchange rate at this level while still benefitting from any gains in the underlying assets going forward. This may be difficult, as I have not found many Hedged Funds (H有) in iDECO and NISA fund lists.

2. Switch some money out of overseas assets to domestic assets, taking the future foreign exchange rates out of the equation, but that may be risky as TokyoBoglehead says.

3. Just let it ride...

Notes:
If the money is in NISA, you would have to take the gain tax free, and then re-invest in a taxable account or back into NISA if you have available allowances.
If the money is in iDECO, you can do the Asset Switching without penalty, if they have any Currency Hedged Funds.
If the money is in a taxable account, you would have to take the gain and pay the taxes, and then re-invest.

[captainspoke]

yep, of course

and today, 139 > 141

[sutebayashi]

Just updating my monthly spreadsheet and it seems like our net worth is up 60%+ in yen terms since December 2020.

Absolutely insane. Most of that is from the exchange rate.

103 JPY on 30 Dec 2020
139 JPY on 28 Jul 2023

I have no idea what to do here, so I will do nothing and just carry on with the plan

Maybe for fun, also convert your value into USD, Gold, Bitcoin? JPY might be the most relevant, but if it’s an unstable measure then it does make one think.

[RetireJapan]

Just updating my monthly spreadsheet and it seems like our net worth is up 60%+ in yen terms since December 2020.

Absolutely insane. Most of that is from the exchange rate.

103 JPY on 30 Dec 2020
139 JPY on 28 Jul 2023

I have no idea what to do here, so I will do nothing and just carry on with the plan

Maybe for fun, also convert your value into USD, Gold, Bitcoin? JPY might be the most relevant, but if it’s an unstable measure then it does make one think.

That is a really interesting idea. Have the total in JPY, USD, GBP, just to get a sense of perspective. I like it.

[goodandbadjapan]

Just updating my monthly spreadsheet and it seems like our net worth is up 60%+ in yen terms since December 2020.

Absolutely insane. Most of that is from the exchange rate.

103 JPY on 30 Dec 2020
139 JPY on 28 Jul 2023

I have no idea what to do here, so I will do nothing and just carry on with the plan

Maybe for fun, also convert your value into USD, Gold, Bitcoin? JPY might be the most relevant, but if it’s an unstable measure then it does make one think.

That is a really interesting idea. Have the total in JPY, USD, GBP, just to get a sense of perspective. I like it.

I usually check my NW in Yen / Sterling and USD and, yes, the yen value has skyrocketed, but the other have been increasing much more slowly! But right now yen is what matters to me so I am happy.

[Gulliver]

Also, I wonder how long Japan can viably manipulate its currency. Anyway, I wouldn’t count your chickens etc…