Carry Trades and Volatility Shocks
Dantes Outlook Market Podcast
English - February 24, 2022 22:46 - 1 hour - 60.9 MB - ★★★★★ - 6 ratingsInvesting Business News Business News advisory consulting decision making decisions finance financial planning global investing markets portfolio management Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
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Tim explains that carry trades (borrowing at low interest rates to finance higher-yield investments, and assuming market stability), are behind recurring booms and busts. Tim and his fellow authors argue that market crashes are not the result of economic recessions – rather, market crashes cause recessions.
Currently, there is risk of another carry crash, which was in development before the Russia-Ukraine crisis.