Strategy for the 2025 NISA

[northSaver]

Sorry, I forgot to include the x-axis scale on my chart yesterday. You probably figured it was a monthly chart, but here it is again for clarity (first image below). Now down almost 7%. I'll be lump-summing some cash at 10%.

Also, the second image below is pretty interesting. It's a bit blurry sorry, but it shows how long a yen-based international stock fund like All Country took to recover from the GFC. The answer is over 6 years! Note how much longer the yen-based one (brown line) took compared to the local-currency one (top blue line). This is down to unfavourable exchange rates for a yen investor at the time.

This is an extreme example but it supports the fact that you shouldn't put money into funds like All Country unless you're prepared to let it grow (don't sell any) for at least 10 years. The worst-case scenario would be something like this happening just before or after you retire. That's why diversification into cash, bonds, gold, etc. is important for those nearing retirement.

[ChapInTokyo]

Thanks for the chart. The risk of a strengthening yen is definitely the elephant in the room!