Yen Carry Trade Is Back… Carry Trade That Blew Up Markets Is Attracting Hedge Funds Again
What It Means – Hedge funds are reviving the yen carry trade, borrowing yen at low interest rates to invest in higher-yielding assets. This strategy, which had waned due to market volatility and rising global interest rates, is gaining traction again as Japan maintains ultra-low rates. However, the resurgence carries risks, including potential losses if the yen strengthens or global rates rise further. There is a delicate balance investors must navigate in this renewed carry trade environment.
The Rout… What a Short, Strange Trip It’s Been
What It Means – Reflecting on the recent market turmoil highlights the unexpected resilience of the economy despite significant challenges. It discusses how investors have navigated through a series of economic shocks, including inflation, interest rate hikes, and geopolitical tensions. Despite these hurdles, markets have shown surprising strength, driven by robust corporate earnings and consumer spending. This emphasizes the unpredictable nature of financial markets and the importance of adaptability for investors.
Harris to Propose $25,000 Assistance for First-Time Homeowners…
What It Means – Vice President Kamala Harris has proposed a $25,000 assistance program for first-time homebuyers to address persistently high housing prices. The initiative aims to make homeownership more accessible amid rising costs and limited supply. This proposal is part of a broader effort to tackle housing affordability and support economic stability. The plan includes measures to increase housing supply and provide financial support to low- and middle-income families. However, It does not address two major problems, increasing supply or lowering mortgage interest rates.
Chinese Convertible Bonds Rocked by Once-Unthinkable Defaults…
What It Means – Chinese convertible bonds are facing unprecedented defaults, shaking investor confidence. Once considered safe, these bonds are now under scrutiny as companies struggle with economic challenges and tighter regulations. The defaults highlight the risks in China’s financial markets and the potential for broader economic repercussions. Investors are reassessing their strategies, wary of further instability.
There’s an apostrophe battle brewing among grammar nerds – Is it Harris’ or Harris’s…
There is a debate among grammar enthusiasts about the correct possessive form of names ending in “s,” sparked by Vice President Kamala Harris choosing Minnesota Governor Tim Walz as her running mate. The Associated Press Stylebook recommends using only an apostrophe (e.g., Harris’), while others argue for adding ‘s (e.g., Harris’s). This debate has intensified with Harris’s candidacy, highlighting differing opinions on grammar rules. Experts like Benjamin Dreyer advocate for the ‘s form for simplicity. November can’t get here soon enough!
Data supplied by HS Dent Research
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Relative strength measures the price performance of a stock against a market average, a selected universe of stocks or a single alternative holding. Relative strength improves if it rises faster in an uptrend, or falls less in a downtrend. It is easily applied to individual positions in your portfolio and to sectors and asset classes.
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