August 5, 2024

By Nigam Arora & Dr. Natasha Arora

To gain an edge, this is what you need to know today.

Carry Trade Unwinds

Please click here for a chart of Japanese yen ETF (FXY).

Note the following:

• The chart shows the rapid rise in the yen.
• The chart shows that  the rapid rise occurred after the Bank of Japan raised rates.
• ZYX Allocation by The Arora Report has a long position in yen ETF (FXY).  We previously wrote that FXY would act as a hedge.  That call has now proven spot on.  FXY is rising while stocks are experiencing carnage.
• We have been sharing with you for a while to keep an eye on actions from the Bank of Japan as they may have a large impact on global stocks, including U.S.