πI am most concerned with the unwinding of Japanese Yen Carry Trade. Imagine the global markets as a massive high stakes game of Jenga. For decades the very bottom block that is the foundation supporting the entire tower has been billions of dollars of dirt cheap borrowed Japanese Yen.
Now imagine the Bank of Japan slowly pulling that block out with a pair of pliers.
When borrowing Yen suddenly becomes expensive, investors can't just sit on their hands. To pay back those newly pricey Japanese loans, global funds are forced to liquidate their winning positions elsewhere.
This means selling off US Treasuries, dumping high flying tech stocks & pulling liquidity out of crypto.
What should investors do?
Build a dry powder cash reserve which would allow you to buy quality stocks at big discounts.
Pivot to local strong stocks like $DBS(D05.SI)$ & a $OCBC Bank(O39.SI)$ . They act as anchors when the markets are volatile.
Stay calm & be patient.
@Tiger_comments @TigerStars
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