I’m Zen from Japan. From April 2024, I’d like to publish my assets, income and expenditure once a month. Please enjoy watching the release of assets held by average Japanese. If you have any advice, please let me know!
Firstly, I introduce myself. It looks roughly like the following.
Age : completed master’s degree in 2021 (late 20s) Major : Chemical Engineering Occupation : Research and development job at a chemical manufacturer Income : Late 200,000 yen Investment policy : Focusing on index investment with NISA, and trying out various investments Target : Dividend 1 million yen/year
Assets amount disclosure (Jun. 2024)
Total assets amount
Zen’s total assets in Jun. 2024 were 13,890,718 yen. (86,638 USD) The breakdown is as follows.
In terms of Japanese yen, only others (Vietnamese stocks) was negative compared to last month, but the overall balance was +751,514 yen. On the other hand, in dollar terms, Japanese stocks are negative compared to last month due to the weak yen. The overall balance was +2,944 USD.
June is the month when bonuses and dividends are paid out!! My bonuses and dividends are still small, but it’s still nice to receive them. I was so happy that I went out for Japanese barbecue by myself, but I won’t tell anyone.
Let’s check the breakdown of each financial asset.
Japanese stocks
The Japanese stocks held by Zen were -228 USD compared to last month. The trend of the Nikkei Average in dollar terms was as shown in the image below.
Charts provided by TradingView
The Nikkei average temporarily fell due to rising global long-term interest rates and concerns about a slowdown in the US economy. Furthermore, there is growing speculation that the Bank of Japan will reduce its purchases of government bonds in July and implement an additional interest rate hike And I’m also concerned that the US may soon be considering a rate cut.
As a novice investor, I can’t predict how these will affect the Nikkei average, so I’m thinking of deciding my future investment policy after the results of the Bank of Japan meeting and FOMC meeting in July.
Although I have concerns, I would like to continue holding on to the stocks I believe they will rise in the long term.
Investment trust (S&P500)
I have accumulated the following investment trusts using the new NISA investment limit. ・三菱UFJ-eMAXIS Slim 米国株式（S&P500） 33,333 yen ・三菱UFJ-eMAXIS Slim バランス（8資産均等型） 10,000 yen
The investment trust I held was +635 USD compared to last month. The additional reserve amount has been included in this month’s price, and taking that into account, this month’s valuation has increased slightly.
The trend of S&P500 was as shown in the image below. The blue line is the value in Japanese yen terms, and the orange line is the value in dollar terms.
Charts provided by TradingView
Overall, US stocks have performed well this month.
With the US inflation rate still above 2%, interest rates were left unchanged at the June FOMC meeting. On the other hand, the inflation rate is gradually declining, and some are of the opinion that interest rates will be cut before the end of the year. It will be interesting to see what trend US stocks will follow at a time when the US economy is stagnating and interest rates are cut.
Bonds
As for bonds, I hold iShares Core U.S. Aggregate Bond Market ETF (AGG). The bonds I hold increased by +17 USD compared to last month. This month’s AGG trend was as shown in the image below.
Charts provided by TradingView
AGG’s stock price has risen this month. It is often said that there is a see-saw relationship between bond prices and interest rates, but are they starting to see interest rate cuts soon? (I don’t really understand this part yet.)
Since an interest rate cut is expected soon in the US, I would like to make additional purchases. But due to the weak yen, I’m reluctant to convert to dollars, so I’m holding off on any purchases.
Exchange rate
This month’s USD/JPY trend was as shown in the image below.
Charts provided by TradingView
The yen’s depreciation is unstoppable. It has finally broken the 160 JPY/USD mark. When Prime Minister Kishida took office, the dollar was at 110 yen to the yen, and now it’s hard to believe there was a time when it was in the 110 yen range. Every day I regret not buying dollars back then, and not converting them to dollars when dollar was at 130 yen.
When I think about it that way, now I wonder I think 160 JPY/USD is expensive, but when the dollar reaches the 200 JPY/USD range in the future, I will wonder why I didn’t buy. Will the dollar actually reach 200 yen?
I think the US will cut interest rates and Japan will raise them soon. I believe the yen will temporarily appreciate at that time, so I would like to buy at that time.
This month’s expenses
This month’s credit card payment amount was 94,874 yen (591 USD). Last month and the month before, my expenses exceeded 100,000 yen, so this is the first time in a while that I’ve had less than 100,000 yen. The biggest expense this month was my car tax. It was 30,500 yen.
This is often denied in investment circles, but Zen actually owns a car. And it’s a MINI. Looking at the trend in my assets, there was a significant drop in my assets last fall, but that’s because I bought a car. Because it was so cute… It can’t be helped…
Summary
My assets have increased significantly this month thanks to bonuses and dividends! Bonuses are a lifesaver for JTC (Japan Traditional Company) employees after all!
The Japanese yen’s share is 38%, so I would like to invest somewhere soon. If the yen had not weakened so much, I would be investing without hesitation, but the current situation is that I have not taken any steps due to the weak yen.
I think that the future direction of the market will become clear at the FOMC and Bank of Japan meeting in July. So I’m thinking of waiting until the results are out to decide on my future investment policy.
The above was the asset amount disclosed in Jun. 2024. The rainy season hasn’t ended yet and it’s still raining, but summer is coming soon. Personally, I’d like to work hard on my diet in preparation for summer. See you next month.
