Damm Japanese carry trades , can borrow money for Western and US shares with almost no interest?4000 Billion dollars. SMCI SACRIFICED
$Super Micro Computer (SMCI.US)$ ... was/is very strong. The revenue forecast for the quarter ending in September was $6 billion to $7 billion, versus the $5.52 billion consensus. It also forecast sales of $26 billion to $30 billion for the year ending in June 2025, compared to the $23.4 billion estimate. Rational, this is very good!
Humble hypothesis?
So what happens here ? So in February the price was around 450- 480 ? Many Japanse people buyed ... great gain ... but must sell now with little or no gain.
Because interest rates in Japan have been very low for a long time (and the yen has also continued to weaken), it has been lucrative for professional investors to borrow money in Japanese yen and reinvest in shares worldwide. In jargon this is described as a carry trade. The sudden sharp rise in the Japanese yen as well as "the first interest RATE INCREASE" in Japan thwart this scenario. Parties try to secure their positions as quickly as possible by rolling them back. In other words: sell shares and then pay back yen. Since the Japanese carry trade is estimated to be worth over 4,000 billion USD, the impact could be significant and last for some time.
THE GOOD NEWS ... the rates cannot go further up due to instability markets all over the world. And the positions are almost closed?![]()
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So what happens here ? So in February the price was around 450- 480 ? Many Japanse people buyed ... great gain ... but must sell now with little or no gain.
Because interest rates in Japan have been very low for a long time (and the yen has also continued to weaken), it has been lucrative for professional investors to borrow money in Japanese yen and reinvest in shares worldwide. In jargon this is described as a carry trade. The sudden sharp rise in the Japanese yen as well as "the first interest RATE INCREASE" in Japan thwart this scenario. Parties try to secure their positions as quickly as possible by rolling them back. In other words: sell shares and then pay back yen. Since the Japanese carry trade is estimated to be worth over 4,000 billion USD, the impact could be significant and last for some time.
THE GOOD NEWS ... the rates cannot go further up due to instability markets all over the world. And the positions are almost closed?
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Money Thrill OP : And so i already have a limit at 480 dollar. The lowest Postmarket... and see what happens Premarket. I buy the company not the Money (Warren Buffet! )![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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Money Thrill OP : I SHALL GIVE HOPE TODAY ...i shall write an Amazing Story about the Future of The SEMICONDUCTORS Future with Video (sorry in Dutch)but so you can have a idea of our amazing Future. Yes, Belgium is the PLACE all over the WORLD the companies are here SECRETLY, some names i know, Intel, ASML.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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Ultratech Money Thrill OP : I learned something new. I thought Belgium for beer waffles and chocolate
Money Thrill OP : Indeed, very good chocolate but also beer ... and also cookies from Lotus Bakeries Biscoff![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Money Thrill OP : The SEMICONDUCTORS Future CHIPS for 2035 are now Made in Belgium with support of Greatest SEMICONDUCTORS companies all over the World. NOT ON THE MARKET ! I translate a bit from Dutch and explain but if you shall see the dutch video you can have an idea how amazing it is![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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CorlisDeesMinistries Money Thrill OP : Really?
CorlisDeesMinistries CorlisDeesMinistries : The disturbance is caused by alleged threats which have no basis in reality.
Money Thrill OP : Yes, the Carry Trades were a big problem, which was all over the news in Europe. (now positions closed and that was the green days ) But the algorithms of the countless ETFs are also a major problem. Many portfolios start selling a portion when the stock falls. And if prices are too high, parts are sold. I followed that in my asset management portfolio. Sometimes only a few are sold, but with a large number of clients there are thousands.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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Money Thrill OP CorlisDeesMinistries : From Financial Journal " The Time" Belgium ... The recent sell-off is largely due to technical factors, primarily the unwinding of carry trades. Investors borrowed in cheap yen at near-zero interest rates to invest the money elsewhere. This no longer works due to interest rate increases in Japan and the rise of the yen. The reversal of these speculative positions is not the result of a rapidly deteriorating economic situation. Although it remains to be seen whether sharp stock market declines do not in themselves create a negative prosperity effect and thus have an impact on the real economy.