1 Part.
JAPAN IS ABOUT TO LAUNCH A CARRY TRADE COLLAPSE.
Why the Bank of Japan's decision may hit the markets.
The Bank of Japan may raise the rate from 0.5% to 0.75%.
At first glance - it's a small thing.
But it is on the cheap yen that the JPY Carry Trade strategy has been held for years:
- borrowed cheap yen
- converted to dollars
- the money went into stocks, ETFs, real estate, and crypto
The Carry Trade on the yen is one of the largest hidden supports of the global markets.
Carry Trade survives on ultra-low rates
even a small increase → sharp recalculation of risks
large funds start to unwind positions in advance.
This means the markets lose hidden liquidity.
This is not a forecast of a crash.
This is a warning about a zone of tension.
Sometimes markets fall not due to events,
but because money starts coming back home.
We are watching closely...
