RetireJapan

I often wonder whether long-term economic performance correlates with the strength of a currency. A quick search found this:
https://www.economicshelp.org/blog/1432 ... -currency/

Over the next 20 to 30 years, I find it hard to imagine Japan's economy doing better than the other developed markets we invest in, given its demographic issues, lack of start-ups, isolation, relatively weak IT industry, large national debt etc etc. The yen may strengthen if the Bank of Japan raises rates to control imported inflation but again, I cannot imagine this economy heating up enough to require high interest rates for long. And stagflation would surely scare away capital from the yen, not attract it? From what I read, the yen seems to have lost its safe haven status.

Either way, I don't see any alternative to plugging away with DCA in eMaxis SLIM All Country etc. Just interested in your thoughts on this.



*On a micro level, I think it balances out over time:
If the yen keeps falling, it increases the yen value of 90% of my existing portfolio which is already invested in foreign-denominated assets, but it means I will get fewer of those overseas assets for each fixed-amount tsumitate contribution that I continue to make in yen.
If the yen rises, the opposite is true.

It was an old City grandee who said the currency of country is like its share price for that country. If lots of money is being made~economy doing well in the country, then value of the currency will go up. The Japanese economy really hasn't grown over the last thirty years.

japan is kind of screwed in simple terms imo, but you as a individual should do your best to capitalize on any siutation to best u can