With how weak the yen keeps trending the last few years, would it be a good idea to switch to having some money in dollars or yuan to keep against inflation and weakening yen?
Basically if I get dollars or yuan now and a year later inflation higher and yen keeps getting weaker the value of the dollar or yuan would keep its value better than the yen?
by merica2033
19 comments
Who knows, without a cristal ball it’s impossible to tell.
You’d be best investing in a broad fund index and stop worrying too much.
Impossible to know the future. But I don’t keep much yen. I have a hard time seeing the situation dramatically improve. The small strengthening that happens here and there seems to be intervention. A crash in global markets may end up helping the yen if there’s some deflation, but I would have thought that to happen already. Global markets are more unpredictable than ever.
Anyone who knows this won’t tell you, and you’d be rich if you did
Was a good idea to do that 5+ years ago.
I did. Not because I knew the yen would become weak. Just accident.
Best investment strategy is to be accidentally lucky.
USD is also declining though probably better than JPY. I would go for CHF or Euro.
Why would you ever hold Yuan? Do you have any spending obligations in Yuan?
If we knew the answer to that we’d all be millionaires
FOREX Trading is a whole discipline-the largest financial market in the world.
I keep half-ish of my cash savings in my US bank account, half over here. You just never know, so better to diverse.
Considering the government takes action when it hits close to 160, I don’t think that’s a good idea. But who knows. Long ago I thought they wouldn’t let it slide past 125
Why not have a little bit of both?
Yep. It’s a good idea
Hello
I own my businesses and started invoicing everyone in their local currency (SGD, GBP, Eu and mostly USD, RM, Aud and Cad) .
I made sure its spread out- not all eggs in one basket.
I made sure not to invoice in Turkish lira tho I lost out so much 🙁
It’s always a good idea to be diversified in your holdings.
You should be investing in U.S stocks/ETFs anyway. That’s essentially dollars.
If you are investing with yen, try to invest in Japanese companies that do around 50% or more of their business outside of Japan.
The slide will continue, I reinvest all my US dollar based dividend back into US/European stocks. Not to mention diversifying into silver, gold and Bitcoin. Like everything here fool me once shame on me , fool me 6 or 7 times shame on me again. Speaking to the unbelievable stupidity that the BOJ continually pulls when trying to counteract a weak yen. Their inability to think outside the box is going to kill the yen.
Sure why not, do you like insurance? It’s the same.
The safest option? Invest in tangible assets. Precious metals are the classic hedge. It’s not fool proof- some of my platinum has decreased in “value” but it’s only a loss if you sell while it’s undervalued. There’s a 10% tax on it in Japan but you get that back when you sell. It can also be sold anywhere in the world for their currency.
Invest in being able to grow your own food and purify your own drinking water. Everything else is just creature comforts.
But this is a finance post, and my answer doesn’t quite answer what you’re asking directly. As far as currency exchanges go- I assume this is less of an investment type strategy and more of a “what if ¥ hits 0” type of thing? Because if we’re talking regular inflation, the exchange fees will probably eat up any margins you’ve made by switching currency.
All that yapping to just agree with everyone else, no one knows the future and if you pay attention to the news, it’s just trying to manipulate you emotionally into making quick decisions.
No.
All currencies are bad investments. You don’t want to hold any currency beyond what you need in your emergency fund. That’s because all currencies lose purchasing power over long time windows.
Over the last five years the dollar has been a better asset than the yen for people living in Japan, sure. But a far better investment would have been a globally-diversified low-fee all-stock portfolio.
That globally-diversified low-fee all-stock portfolio is the default asset. That’s where all your money wants to go. It has a much higher expected real return than any currency, by definition. You can achieve the by just buying 100% eMaxis Slim All World blah blah, or 100% VT (Vanguard Total World Stock blah blah), or equivalent funds from elsewhere.
The only cash you hold is your emergency fund and by construction, that should be in the currency of your critical expenses, because the whole point is to be about to fund your critical expenses if you lose your income at a time that it would be bad to sell stonks. In that situation, you don’t want to be at the whim of the forex gods.
So if your critical expenses are in yen, hold yen for your emergency fund, and plow everything else into a globally-diversified low-fee all-stock portfolio.
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