“The One Investment that ALWAYS Flies
When Almost Everything Else Falls!” - Extract of Sovereign Society's Letter
The world’s biggest credit and asset bubbles ever created in the history of humanity are all starting to burst at the same time. So where do you go for safety and profits?
I’ll tell you where: The one investment on Earth that didn’t get pumped up on cheap credit and phantom finance…the one investment that didn’t boom when almost everything else did…the one investment that went nowhere in the last 18 years, only enjoying brief booms when the rest of the world started falling apart – like in 1998 after the collapse of LTCM, 9/11, etc.
This investment thrives on chaos…flies when everything else falls…dances when everything else dies…
I’m talking about the Japanese yen. Ironically it was the yen (and the Bank of Japan) that was also the single biggest source of cheap money, which helped fuel the recent and unprecedented bull markets in stocks, real estate and commodities. But it didn’t do it to inflate global asset bubbles. It did it in hopes of jump-starting its own depressed economy. So it offered investors the globe over the cheapest source of financing on the planet…loans at near 0% interest. It was basically FREE money. And so irresistible was it, that investors came from everywhere to dip their toes into the deep waters of this enchanted money pool. Everyone from Private Equity firms to hedge funds…from money market funds to Japanese housewives dived in.
These firms and investors borrowed up every cent they could – some estimates say the sums reached as high as $2 trillion.
YEN & JAPANESE CARRY TRADE IF YOU CARE TO GET INVOLVED
Labels:
derivative,
DJIA,
Japenese Yen Carry Trade,
NASDAQ
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