Blog > International Investing > Blog article: Stagflation Will Kill the Carry Trader
 | Email This Article Email This Article  | 

Stagflation Will Kill the Carry Trader

Posted June 12, 2008

“Throw stagflation into the mix, and the whole picture changes. This is exactly what’s happening now. The rules are changing but no one seems to have informed ‘the players’ yet.” — Sean Hyman

by Sean Hyman

Baltimore – (TFN): For a long time now, if you had a background in stock trading, you could predict where carry trades were heading next. That was especially the case for the really popular carry trades like EUR/JPY (euro to the yen) and GBP/JPY (British pound to the yen).

These forex trades mimicked the Dow and the Nikkei. So if it was an “up” day for stocks, generally it was also an “up” day for carry trades. And the same was true when stocks dropped - these carry trades also took a nosedive.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

American Debt Crisis Set to Implode

Ben Bernanke is just DAYS away from unwinding the world’s biggest bet -
and his actions could spin markets into a “deflationary, global collapse.”

To learn his dirty little secret - and grab potential gains of 319% or MORE, read Jack Crooks’ latest report.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

However, that only works when everything is “normal” in world economies. Throw stagflation into the mix, and the whole picture changes. This is exactly what’s happening now. The rules are changing but no one seems to have informed “the players” yet.

Many traders are still shorting carry trades on poor stock market days. And these unfortunate traders are about to lose everything - and they won’t know why. Read on to learn more.

****Make sure you sign up for our free TFN News Feed for breaking news, special reports and new financial videos. You can pick your favorite reader . Or if you prefer, you can have or free daily email delivered to your inbox .


Related Articles


Posted by Sean Hyman · Filed Under International Investing 

Comments

close Reblog this comment
Powered by Disqus · Learn more
blog comments powered by Disqus