Jim Jubak is one of my favorite commentators, his stock picks are particularly interesting.The yen carry trade is one explanation, however if that piece of the puzzle fits, wouldn't the market factor that in? I will not be surprise if the next explanation is one of Jewish conspiracy. Time to get the old dart board out.
What Jim said is that the Yen carry trade is THE explanation. I believe it accounted for 3 of the 4 weeks of selloffs. I have been tracking the relative movement of the A$, NZ$, etc against the Yen and the huge selloffs correlate with movement of the Yen against these currencies. You can say movements of the Yen cause the unwinding of the carry trade or the unwinding of the carry trade cause the Yen to move.I rarely see the financial media giving good explanations for selloffs...what they give are believable theories not necessarily the right one.
Post a Comment