With JPY so bad against the USD, wouldn’t it make sense to dump all USD based ETFS (S&P500) and buy back later?


Looking at S&P500 performane for ETFs like eMAXIS Slim, it has a +50% return this year alone, mostly because the JPY is doing so bad against the USD, eg https://emaxis.am.mufg.jp/fund/253266.html

But that also means that it will crash hard if/when the JPY recovers against the USD. So logically speaking, isn’t it better to just dump all assets that are exposed to this out of æ—§NISA, for example assets bought prior to 2023/01 before the rally, realize the gain (tax free thanks to NISA), and rebuy later if/when JPY/USD is back at a normal range? (~132)

Upside is realizing a 50% ROI in just 1 year, downside is of course that it’s a good hedge against the weak yen

What do you think?

by HoodFruit

Leave a Reply
You May Also Like