Stock market crash is ALL about the unwind of the ‘yen carry trade’. Japan raised interest rates - the Nikkei drops 4500 points - the largest drop ever. Japanese banks at loss limits yesterday. The yen had gotten far too weak.. 108/9 to 90/91 Aussie in just a couple of days. Crazy stuff…. 160 to 140ish $US in the same period.
This is bound to wash out in another day or so. Correction was long overdue. Imagine an economy, the world’s 4th largest, that has basically had zero interest rates for 25 years, and now has raised rates. Money flowing back to Japan and the yen…
Still, the long term prognosis for Japan remains poor - a few margin calls won’t change that.
Imo, back to business as usual soon. Good buying opportunity for ASN and beaten down shares…
GLTH
ASN General Discussion, page-20859
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