Oh, I thought you had most of your wealth in eMaxis Slim All Country, in yen. My bad.RetireJapan wrote: ↑Wed Aug 09, 2023 11:08 amPretty much all my money is in world index funds (mostly USD or largely denominated in USD).Roger Van Zant wrote: ↑Wed Aug 09, 2023 1:55 am You have lots of USD investments/savings? I thought you were British.
Net Worth Poll
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Re: 2023 Update? Net Worth Poll
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Re: 2023 Update? Net Worth Poll
Oh, it is, but the contents of eMaxis Slim All-Country are not denominated in yen, so when the value of the yen goes down the price of the fund goes up, up, up.Roger Van Zant wrote: ↑Wed Aug 09, 2023 1:18 pmOh, I thought you had most of your wealth in eMaxis Slim All Country, in yen. My bad.RetireJapan wrote: ↑Wed Aug 09, 2023 11:08 amPretty much all my money is in world index funds (mostly USD or largely denominated in USD).Roger Van Zant wrote: ↑Wed Aug 09, 2023 1:55 am You have lots of USD investments/savings? I thought you were British.
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Re: 2023 Update? Net Worth Poll
Yes, less and less exposure. The shrinking yen has caused MSCI to decrease Japanese exposure in the MSCI ACWI and other indexes this month.RetireJapan wrote: ↑Wed Aug 09, 2023 11:08 amPretty much all my money is in world index funds (mostly USD or largely denominated in USD).Roger Van Zant wrote: ↑Wed Aug 09, 2023 1:55 am You have lots of USD investments/savings? I thought you were British.
I honestly would not be surprised if Japan is 2ish% of the index by 2040 or so. Which is why these indexes are so fantastic. Everyone who buys Japanese equities directly remains increasingly overexposed.
However, I certainly price my net worth in Yen and USD for reference. I am not American though.
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Re: 2023 Update? Net Worth Poll
I've added USD and GBP to my spreadsheet. Gives a bit more perspective.TokyoBoglehead wrote: ↑Wed Aug 09, 2023 1:23 pm However, I certainly price my net worth in Yen and USD for reference. I am not American though.
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Re: 2023 Update? Net Worth Poll
I don't understand how you work out your net worth in dollars just from your holdings of eMaxis Slim All Country in JPY.RetireJapan wrote: ↑Wed Aug 09, 2023 1:26 pmI've added USD and GBP to my spreadsheet. Gives a bit more perspective.TokyoBoglehead wrote: ↑Wed Aug 09, 2023 1:23 pm However, I certainly price my net worth in Yen and USD for reference. I am not American though.
Do you just look at the value of your holdings in JPY and then convert that amount to USD at the day's exchange rate?
Also, since you live in Japan, why is your net worth in USD useful to you?
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Re: 2023 Update? Net Worth Poll
Looking at my account, including YTD 2023, my investments are up call it 18% - 23% each year over the last three years.AreTheyTheLemmings? wrote: ↑Tue Aug 08, 2023 12:59 am It's a trap! They're trying to make you change your long-set plans, cash in, and start timing the market!
This is way above the average performance that I was led to believe I would see for my asset allocation (call it 5-10%), but is significantly a function of the recent yen weakness.
Fortunately, I suppose, I am yen bear so I am not inclined to sell up and wait for a big currency reversal that will give me a chance to buy it all back 25% cheaper (and take a holiday in the Caribbean).
But at some point a nasty -20% or worse year at least should not come as a surprise, be it from currency or stock prices. I hope to be smart enough to only commit more money when that happens…
Re: 2023 Update? Net Worth Poll
Try this exercise.Roger Van Zant wrote: ↑Thu Aug 10, 2023 12:11 am
I don't understand how you work out your net worth in dollars just from your holdings of eMaxis Slim All Country in JPY.
Do you just look at the value of your holdings in JPY and then convert that amount to USD at the day's exchange rate?
Also, since you live in Japan, why is your net worth in USD useful to you?
Take your portfolio value in yen.
Divide by 140 to get a USD amount.
Multiply that USD amount by 110.
The difference between this value and what Rakuten or whoever currently shows you is the difference in value created by the weak yen. 22%, if my calculation is correct.
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Re: 2023 Update? Net Worth Poll
Yes I think that is the idea.Roger Van Zant wrote: ↑Thu Aug 10, 2023 12:11 am Do you just look at the value of your holdings in JPY and then convert that amount to USD at the day's exchange rate?
Imagine if you were a poor Zimbabwean global investor during their hyperinflation (actually they might be having another recently, but that aside).
You would have become a zillionaire in Zimbabwean dollars, but from another viewpoint you didn’t gain much, just the value of your currency plummeted.
The yen is not in that sort of situation and we can still use yen to purchase stuff, but my thinking there is it is better to not get fixated on a single poor measure of value.
Conversely, even when the yen was strong it was nice to look at in foreign currency terms and see how rich I felt. Those were the days
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Re: 2023 Update? Net Worth Poll
Ah, I see!beanhead wrote: ↑Thu Aug 10, 2023 2:05 amTry this exercise.Roger Van Zant wrote: ↑Thu Aug 10, 2023 12:11 am
I don't understand how you work out your net worth in dollars just from your holdings of eMaxis Slim All Country in JPY.
Do you just look at the value of your holdings in JPY and then convert that amount to USD at the day's exchange rate?
Also, since you live in Japan, why is your net worth in USD useful to you?
Take your portfolio value in yen.
Divide by 140 to get a USD amount.
Multiply that USD amount by 110.
The difference between this value and what Rakuten or whoever currently shows you is the difference in value created by the weak yen. 22%, if my calculation is correct.
Just did this and it came out to 21.43%.
However, it's all purely academic, right? Since I am only earning and spending yen?
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Re: 2023 Update? Net Worth Poll
I keep toying with the idea of currency hedged ETFs...sutebayashi wrote: ↑Thu Aug 10, 2023 2:00 amLooking at my account, including YTD 2023, my investments are up call it 18% - 23% each year over the last three years.AreTheyTheLemmings? wrote: ↑Tue Aug 08, 2023 12:59 am It's a trap! They're trying to make you change your long-set plans, cash in, and start timing the market!
This is way above the average performance that I was led to believe I would see for my asset allocation (call it 5-10%), but is significantly a function of the recent yen weakness.
Fortunately, I suppose, I am yen bear so I am not inclined to sell up and wait for a big currency reversal that will give me a chance to buy it all back 25% cheaper (and take a holiday in the Caribbean).
But at some point a nasty -20% or worse year at least should not come as a surprise, be it from currency or stock prices. I hope to be smart enough to only commit more money when that happens…