This is interesting. I was just about to rotate a decent amount of money into $ZBAL or $XBAL in anticipation of the Japanese Carry Trade unwinding over the next few months but bonds will be a huge mistake. Key Take Aways: 1. The Nasdaq will get hit exceptionally hard; as Japanese’s money is heavily invested in tech. 2. Bonds will get hit hard as the bond market will undergo turmoil as Japanese Dollars pull out American Bonds and the USA Stock Market; 3. The USA dollar will get hit hard; however, big American multinational companies that trade in multiple currencies will see an increase in profits benefiting from a weaker USD; 4. Leveraged traders will get wiped out; Felix says to get rid of all margin; 5. Money will flee, looking for protection in: I. Gold; II. Non-Tech stocks (think $SCHD) and III. International Stocks. 6. This will not happen all at once, it will happen gradually over the next few months until the bomb goes off all at once. 7. The Japanese government has spent 75 Billion Dollars trying to prevent this to no avail. 8. It is not just Japanese business and retail involved in the Japanese Carry Trade but international businesses and Hedge Funds. So this will be a magnified explosion. 9. Now is a time to hold a decent amount of cash ready to deploy in a 25-35% market crash - while I was going to deploy to $ZBAL, I will continue my $750 weekly buys but start setting aside another $5000 a month into dry powder. When others are crying, I’ll be buying. https://youtu.be/y-xEgwD_EE4?si=PwFVE7q_51ELzJ7I
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