Trwils1230
OP
Leo223
:
yeah i thought it was crazy how fast media was trying to say that kind of trade which was a multiple year built up trade was just unwound in a few days. when bloomberg first started talking about it to, that young guy that hosts surveillance slipped in discretely that shorting the yen would help that trade along as if market sentiment among larger investors is to contain the volatility in the unwind. its literally a concerted effort to sell to retail at peaks before weakness rears its head.
I. Background In the ever-changing financial markets, liquidity crises are like hidden currents that can sometimes create massive waves. When panic spreads and investors rush to sell off their assets, markets can descend into extreme volatility. Monday, the global markets experienced a sudden Black Monday, severely impacting stocks, digital currencies, and other asset classes. In this storm, we witnessed the fragili...
The Carry Trade Unveiled A "carry trade" is essentially borrowing money cheaply and investing it in higher-yielding assets. With Japan having some of the lowest interest rates for years, the yen has become the go-to currency for these trades. The Downside of Yen Appreciation When the yen appreciates, carry trades can become less attractive. Not only does the cost of borrowing yen rise, but if the dollar also weakens, it ofte...
_A_D : too soon
Leo223 : Carry trade might get hit with the spike in oil prices with Libia stopping all production
Trwils1230 OP Leo223 : yeah i thought it was crazy how fast media was trying to say that kind of trade which was a multiple year built up trade was just unwound in a few days. when bloomberg first started talking about it to, that young guy that hosts surveillance slipped in discretely that shorting the yen would help that trade along as if market sentiment among larger investors is to contain the volatility in the unwind. its literally a concerted effort to sell to retail at peaks before weakness rears its head.