NVDA
NVIDIA
-- 140.140 TSLA
Tesla
-- 394.360 PLTR
Palantir
-- 69.990 AUR
Aurora Innovation
-- 8.390 FUBO
FuboTV
-- 5.460 Earn with yen depreciation?! Achieve a growth rate of over 262% in six months with dual benefits of US stock investment.
This article uses auto-translation in some parts.
Since the beginning of 2024,The US dollar has risen more than 14% against the Japanese yen.And at its peak, it reached 161 yen.
Due to this situation, avoiding yen depreciation is also taken into account when investing in US stocks in Japan.
In 2024, the year-to-date growth rate for the US dollar is $S&P 500 Index (.SPX.US)$ 15.55%. $NASDAQ 100 Index (.NDX.US)$ Up 18.73%. $Nikkei 225 (.N225.JP)$ Up 19.42% during the same period. $TOPIX (.TOPIX.JP)$ Up 19.09%. However,It may appear that the Japanese market is outperforming, but when considering the yen depreciation, the opposite becomes apparent.。
According to moomoo's calculations, the yen-denominated performance since the beginning of 2024 $S&P 500 Index (.SPX.US)$ And $NASDAQ 100 Index (.NDX.US)$ has increased byAt 31.77% and 35.41% respectively, they significantly outperformed the Japan market.are doing.
At moomoo, we have reorganized the performance data of the stocks that performed best in the USA market from the perspective of Japanese investors. Taking into account the depreciation of the yen, the stocks that performed best in the USA market are as follows.
Looking at this chart, it is evident that all stocks achieved an increase of over 110% in the first half of 2024 in terms of the yen. $NVIDIA (NVDA.US)$ has increased by over 200%. In other words, if one were to buy NVIDIA stock for 100 yen at the beginning of 2024, it would now be worth over 300 yen.
Looking at this chart, it becomes evident that the extent of the increase in yen-based terms is very appealing, even for major companies in the USA market, despite their not-so-good performance. $Walmart (WMT.US)$ and $Alphabet-A (GOOGL.US)$ Even in 2024, the year-to-date increase is already over 40%.
The biggest risk is the potential depreciation of the US dollar and intervention by Japan.
If market expectations towards the monetary policy of the Federal Reserve Bank shift towards easing and Japan starts intervening in the foreign exchange market to induce yen appreciation, there is a possibility that investments in unprotected US stocks could be threatened.
Even if the market's expectations towards the accommodative monetary policy of the Federal Reserve Bank somewhat boost the performance of the US stock market, the potential risk of a depreciating dollar could also have a negative impact on Japanese investors' investments in US stocks.
In this case, $Proshares Ultra Yen (YCL.US)$ 、 $Japanese Yen Trust (FXY.US)$ 、 $DB US Dollar Index Bearish Powershares (UDN.US)$ ETFs such as related etfs may be helpful for Japanese investors to hedge against the risk of a weak dollar.
Furthermore, there is a possibility that US bond-related etfs will also benefit if market expectations for easing by the FRB increase. $iShares 20+ Year Treasury Bond ETF (TLT.US)$ 、 $Direxion Daily 20+ Year Treasury Bull 3X Shares ETF (TMF.US)$ 、 $Direxion Daily 7-10 Year Treasury Bull 3X Shares ETF (TYD.US)$ ETFs such as etf can also benefit in this scenario and help hedge against the risks arising from exchange rate fluctuations.
- moomoo News Zeber
Source: moomoo, Bloomberg
This article uses auto-translation in some parts.
Source: moomoo, Bloomberg
This article uses auto-translation in some parts.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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