SPDR S&P 500 (SPY)

[Scripo]

Excellent article discribing the carry trade that i have been touting about. Read the whole thing very juicy stuff here folks. BOJ has more power then you all think. They dont have to raise interest rates to cause a death spiral in eqd they can do that by not changing policy. Caugh caugh dec18 2015 start of the ending?

http://www.forbes.com/sites/investor/2014/09/04/carry-trade-the-multi-trillion-dollar-hidden-market/#32284572761c


Conclusion: The carry trade causes a rising U.S. dollar, rising U.S. bond prices, rising U.S. stocks, and deflation in commodity prices. Of course, an unwinding of the carry trade will cause the opposite.

The soaring dollar and strong U.S. Treasury market confirm that the carry trade is alive and well. If and when the Bank of Japan hikes interest rates in order to combat rising inflation, the carry trade will unwind, perhaps ferociously. So, watch the BOJ.

The massive money creation of the major central banks and their “ZIRP” policy (zero interest rate policy) has created such huge financial speculation using other methods as well, making big speculators very rich. And that includes the large trading operations at the Wall Street firm, the biggest global banks, and hedge funds.