🌟🌟🌟We remember that childhood excitement of placing a lost tooth under the pillow & waking up to find a shiny coin in its place. It is a simple act of faith, much like the one investors globally are doing now, hoping for their seasonal reward : the Santa Claus Rally.
However the Santa Claus Rally is starting to feel a lot like that Tooth Fairy : a lovely idea that we desperately want to believe in but the evidence is getting a little shaky.
The real bogeyman this holiday season is the Bank of Japan. A potential BoJ rate hike is the "lump of coal" that could crash the party. The culprit? The massive Japan Carry Trade.
Traders have borrowed trillions of yen at near zero interest rate and funelled that cash globally, fueling a massive market boom. If Bank of Japan raises rates, the carry trade rapidly unwinds.
The result : A sudden withdrawal of global liquidity, threatening a sharp market correction.
So let's proceed with caution and stay calm.
@Tiger_comments
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