Exchange losses on US bonds and emerging market stocks due to the appreciation of the yen
In anticipation of interest rate cuts, I think TLT for US bonds and FM etc. will be investment targets for emerging market stocks, but both must be purchased in dollars. Since the yen appreciates when interest rates are cut, I'm wondering how much profit can be obtained. Could you tell me an investment strategy along with the outlook for the dollar and yen?
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バフェット太郎 : When investing in foreign stocks or foreign bonds, the effects of exchange rates cannot be ruled out, so there is no need to worry too much.
In the first place, emerging market stocks have an inverse correlation with the dollar. Therefore, the reason for investing in emerging market stocks is that a depreciation of the dollar is expected.
If you are investing only in US stocks during the depreciation phase of the dollar, there is a high possibility that it will be done with both exchange rates and stock prices, so it can be said that investing in emerging market stocks is a “better choice.”
Of course, in a phase where the dollar appreciates (depreciation of the yen), Japanese stocks also tend to attract attention, so if you are really concerned about the effects of exchange rates, I think Japanese stocks instead of emerging market stocks are fine.
Also, the dollar-yen outlook predicts that the dollar will continue to depreciate over the next few years, but I don't know how much the dollar-yen exchange rate will be.
ごんじゃ OP : @バフェット太郎 Sama![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Thank you very much for your answers.
The phrase “better choice” made me feel right at home. It seems that I can invest after I have a firm understanding within myself.
We look forward to working with you in the future!