Miami vs Tokyo vs Mallorca — How We Think About Geographic Allocation

The three markets Shibui operates in were chosen deliberately, and they are deliberately different from one another. Miami is USD-denominated, high-growth, climate-repricing. Tokyo is JPY-denominated, deflationary-emerging, currency-cheap. Mallorca is EUR-denominated, supply-constrained, scarcity-driven.

Held together, they form a cross-currency, cross-cycle portfolio. Held individually, each makes sense on its own terms. This essay is about how we think about the relative weighting.

Currency exposure

A USD investor concentrating in Mallorca takes on EUR exposure. A EUR investor concentrating in Miami takes on USD exposure. Neither is wrong, but it should be a conscious choice. Our default for diversified family capital is roughly balanced exposure across USD, EUR, and JPY, weighted toward the investor's home currency.

Cycle and return profile

Each market is in a different cyclical position:

• Miami — late-cycle pricing, structural insurance repricing, value in architecturally protected submarkets.
• Mallorca — supply-constrained scarcity, modest yield, long-duration appreciation.
• Tokyo — early-cycle inflation re-emergence after thirty years, currency at a multi-decade low, value-add depreciation tax shield.

How we allocate

There is no single right answer. As a rough framework for a USD-based family with a 10-year horizon and $5M to $20M to deploy, we typically discuss a starting allocation of 40% Miami, 30% Mallorca, 30% Tokyo, adjusted for the family's use case (is anyone living there?) and currency view.