Over the past three decades, Australian investors have endured the dot-com collapse, the Global Financial Crisis (GFC), the Covid 19 Pandemic market shock and numerous smaller corrections.  Each arrived under different circumstances and the event that ultimately triggered the sell-off was generally easier to identify in hindsight.  Financial crises rarely become destructive because of one […]...

The yen carry trade has survived because one fundamental condition has persisted for decades: money has been comparatively cheap to borrow in Japan.  Investors could borrow yen at low interest rates, exchange those funds for foreign currencies and invest in higher-yielding bonds, equities and other assets overseas.  As examined in the first part of this […]...

The Japanese yen is the third most actively traded currency in the world, but its importance extends well beyond foreign exchange markets.  For decades, exceptionally low Japanese interest rates have allowed investors to borrow cheaply in yen and deploy that money into higher-yielding assets overseas, creating what is known as the yen carry trade.  The […]...