US media The Japanese yen was the world’s driving force could this be the end of the carry trade？ The yen could cause US stocks to plummet “The yen is undervalued．”
the end of the ‘carry trade’? how japan’s yen could be ripping through u.s. stocks
The main driving force behind global markets is the Japanese yen exchange rate, according to a financial historian. “The strong relationship between the structure of Chinese and Japanese monetary policy and U.S. asset prices will come as a big shock to most U.S. investors,” Russell Napier, co-founder of investment research portal eric, said in the report. Stock prices have fallen broadly, and many market participants have been surprised by the speed at which the yen has strengthened. The yen’s strength has fueled speculation that it could signal the end of the so-called “carry trade,” in which investors borrow in low-interest currencies such as the yen and reinvest the proceeds in higher-yielding currencies. “This highlights the vulnerability of U.S. stocks to a strengthening yen,” Napier said in the report. As an example, he cited selling pressure from investors seeking repayment of yen-denominated debt, which has caused U.S. stock prices to fall and U.S. Treasury yields to fall, while the Japanese yen has risen. “With the Japanese yen undervalued and the need for monetary tightening imminent in Japan, investors should not expect U.S. stocks to continue to rise. ” Napier said. For details, see the source: CNBC, US, 2024/8/2, source in English: “The end of the ’carry trade’? How Japan’s yen could be ripping through U.S. stocks” Previous thread.
I guess they can’t lend to people who borrow with the intention of converting it into foreign currency at an interest rate just below the market interest rate in that country.
>>11 Konen? Ah, no, no. Konen is indeed a speaker, but if you think about it logically, a Japanese interest rate hike and an American interest rate cut would not only solve America’s current problems, but also Japan’s unfounded yen depreciation. It would lower the ridiculously high Nikkei average stock price, bring it back to a normal number. On top of that, the Japanese people would know who was buying Japanese stocks. And by doing this, this stupid war would end. That’s why it was necessary, it had to happen now, and it’s good that it’s happening now.
At the moment, there is risk aversion due to hawkish comments from Japan and expectations of an interest rate cut in the US, but if either of them eases, there is a possibility that risk-on will return soon.
The yen was the main funding currency, and until now, no matter how much the United States tried to cool the economy by raising interest rates, or how huge its fiscal and trade deficits were, the asset effect of money from various countries flowing into the high-interest dollar has offset the effects of the interest rate hikes.
>>22 There are a lot of idiots around politicians who invested heavily in the Olympics In the end, they ended up in debt, so they kept it afloat by pouring subsidies into tourism Maybe they’ll pay it back when they die.
I mean, if conservative commentators who are called Netouyo have different opinions, they should at least have a proper discussion. It’s really disgusting.
>>28 People who have been saving for NISA without thinking of the recent weak yen and high stock prices leading to a super strong yen caused by the reverse rotation of the yen carry trade are so unintelligent that it’s pathetic.
In other words, Haruhiko Kuroda’s unprecedented monetary easing was to save America from the Lehman Shock. It’s no longer Japan. Shirakawa is great for fighting against American pressure. Kuroda is rubbish.
Kuroda and Abe have continued to donate Japan’s money to America, Japan has zero growth, America has high growth, and even if they stopped, Japan would already be in ruins. Are we going to forgive the traitors Kuroda and Abe?
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