QQQM - The Yen Strikes Back

2024-07-30 00:50:00 ET

Summary

• One of the largest carry trades in the world, funded by the Japanese yen, has reached some sort of climax and is partially unwinding, which is sending ripples through stock markets in both Japan and the U.S.
• As of Sunday, July 28, the Nikkei 225 Index has been down in nine out of the last 10 trading days, as the Japanese yen has rallied by almost 5%.
• The more extreme example of the present rotation is the convergence of returns between the NASDAQ 100 Index and the small-cap Russell 2000 Index.

One of the largest carry trades in the world, funded by the Japanese yen, has reached some sort of climax and is partially unwinding, which is sending ripples through stock markets in both Japan and the U.S....

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