🌟For 3 decades the global financial system treated the Bank of Japan (BOJ) like a beloved zero percent open bar. Wall Street, hedge funds & institutional investors could borrow infinite amounts of practically free Japanese Yen & then jet off to buy high yielding US tech stocks. It was the ultimate financial cheat code.
With Japanese interest rates climbing to a 31 year high, not anymore .
The Carry Trade closing positions is the one most impacting global markets.
The real problem is the unwinding of the Yen Carry Trade. When borrowing Yen suddenly becomes expensive, investors have to pay back those newly pricey Japanese loans & global funds are forced to liquidate their positions.
This means selling off US Treasuries, dumping global tech stocks & pulling liquidity out of crypto.
Fasten our seatbelts as we can expect volatility ahead. It is time to keep some dry powder to buy quality stocks like the Magnificent 7 at a discount.
@Tiger_comments @TigerStars @Tiger_SG
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