Investing consistently brings both small wins and challenges every week. Over the past week, market fluctuations and new opportunities reminded me of the depth and excitement of investing. Moments like receiving dividend payouts are particularly rewarding—they are tangible proof of the work and strategies put in.
Considering how investments contribute to everyday life and enrich it is one of the greatest joys of being an investor. For a more detailed view of last week’s developments, you can read this article: [“Weekly Asset Management Report | Achieving ¥1.9 Million in Dividends”].
Now, let’s dive into this week’s updates on asset management and other relevant topics!
Asset Fluctuations and Key Factors
Contents
Rate of Change: +0.74% (Week-on-Week)
This week saw a modest increase in assets. Key contributing factors include:
- USD/JPY Exchange Rate Impact
- Movement: ¥157.69 → ¥154.50 (Approx. 2.0% JPY appreciation)
- This yen appreciation reduced the valuation of USD-denominated assets.
- However, my portfolio's design to mitigate currency risks minimized the negative impact.
- Comparison with U.S. Market Indices
- S&P 500 Index: +1.8%
- NASDAQ 100 Index: +2.0%
- The overall rise in U.S. markets positively influenced my portfolio.
- Balance of Asset Changes
- While my growth lagged behind key indices, this was primarily due to the yen’s appreciation and the defensive nature of my portfolio, which has a higher weighting in sectors like pharmaceuticals.
Key Market News
- Federal Reserve Signals Slower Rate Hikes
- Overview: The U.S. Federal Reserve hinted at slowing the pace of rate hikes, citing declining inflation.
- Impact: Prolonged low interest rates could benefit growth stocks, giving technology-heavy indices like the NASDAQ 100 further momentum.
- Bank of Japan Considers Interest Rate Hike
- Overview: Amid a longer-term yen appreciation trend, the Bank of Japan is reportedly considering raising interest rates.
- Impact: While a stronger yen could reduce import costs, it raises concerns about the valuation of USD-denominated assets.
Dividend Income Report
This week, I received a total of ¥158,175 in dividends, highlighting the sustainability of my portfolio.
| Source | Amount (JPY) |
|---|---|
| AllianceBernstein | ¥35,886 |
| Pictet Biotech | ¥21,768 |
| Other High-Dividend Stocks | ¥100,521 |
Dividend-Driven Purchase: A New Washing Machine
A portion of the dividends was used to purchase a Panasonic Top-Load Washing Machine (NA-FA10K3) for approximately ¥120,000. This high-performance washing machine is perfect for handling the large volume of laundry that comes with raising children.
The confidence to make such a significant purchase came from knowing that dividends were covering it. This purchase reinforced the idea that investments can directly enhance day-to-day life.
This Week’s Stock Purchases
Below are the stocks and funds I added to my portfolio this week, along with their investment rationale:
| Stock/Fund | Sector | Investment Rationale | Amount (JPY) |
|---|---|---|---|
| S&P 500 Index Fund | U.S. Index | Offers low-cost, diversified exposure to U.S. growth. | ¥30,000 (NISA) |
| Pictet Biotech Fund | Pharmaceutical Sector | Stable demand and potential for capital gains. | ¥21,000 |
| AllianceBernstein Fund | Emerging Markets | Balanced strategy targeting income and growth. | ¥30,000 |
Selection Criteria:
- Risk Mitigation through Diversification: Using index funds to minimize geographic and sector concentration risks.
- Focus on Growth Sectors: Emphasizing pharmaceuticals and emerging markets for long-term growth potential.
- Long-Term Perspective: Leveraging reinvested dividends to maximize compound growth.
Cryptocurrency Investment: A New Experiment
Having already started with Ripple (XRP), I ventured into purchasing Cardano (ADA) using Moppi Points, converting 130 points into a small cryptocurrency position.
- Why Cardano (ADA)?
Cardano offers long-term potential with a focus on environmentally sustainable technology and financial inclusion. By using points instead of cash, I minimized financial risk while gaining exposure to a new asset class.
This experiment aligns with my philosophy of taking calculated risks while exploring new opportunities in investment.
Summary and Outlook for Next Week
Receiving dividends regularly continues to motivate me. This week, the dividends not only supported daily expenses but also enabled a meaningful purchase—a washing machine. These experiences affirm how investments can directly improve quality of life.
The foray into cryptocurrency further broadens my investment scope. While it’s still a small part of my portfolio, it offers exciting opportunities for diversification and growth.
As an investor, my primary focus remains on balancing market fluctuations with strategies that benefit my family’s well-being.