$ASR
So explosive! 💥 The Wall Street nightmare isn't the financial big shot, but is it Japan's 'Mrs. Watanabe'? 一起聊聊！
Who would have thought that the 'gray rhino' capable of shaking the global market is actually a group of housewives controlling Japanese household finances? At a time when the U.S. and Japan's central banks are in a tug-of-war, the $14 trillion in household financial assets held by 'Mrs. Watanabe' is quietly becoming a key variable influencing global capital!
These Japanese housewives have been making easy profits for years through 'yen carry trades': borrowing Japanese yen at zero interest, converting to dollars to buy U.S. stocks and bonds for high yields, even Buffett has been copying their homework. But recently, the actions of the U.S. and Japanese central banks have turned their profit-making script upside down— the Federal Reserve suddenly shifted from a 'hawkish' to a dovish stance, with interest rate cut signals everywhere; meanwhile, the Bank of Japan is going against the trend, hinting at a possible rate hike in December! Between a cut and a rise, the easy interest spreads they enjoyed have been slashed, and the carry trade model is completely suspended.
Even more frightening is that this wave of 'Mrs. Watanabe's' liquidation is not about selling Japanese assets, but rather dumping their massive holdings of U.S. stocks and bonds! To repay their yen loans, they will crazily sell off dollar assets to get dollars, then convert it back to yen to pay off debts. With trillions of funds withdrawing, it could likely trigger a stampede in U.S. stocks and bonds, even collapsing the global market. The collective panic of retail investors is far more destructive than the rational actions of institutions; this 'gray rhino' is getting closer!
In the U.S.-Japan tug-of-war, will 'Mrs. Watanabe's' selling spree affect the cryptocurrency market? Do you think Bitcoin and other crypto assets will become a safe haven, or will they be dragged down too? Check out the concept of 'K' little milk dog 🐶 p u p.pie s for more insights!