Forget Trump; Japan Is Still The Real Risk

The reverse yen carry trade, part 2

The first line of last week’s Closing Thoughts piece was "Well, that was a week!” Turns out, we just got another!

The whipsaws in but the market have been unrelenting for two solid weeks and the scariest part might be that we have no idea when it really might end. A lot of investors probably thought that Wednesday’s rally marked a bottom and it was time to return, but these folks would have only gotten the rug pulled out from under them on Thursday.

While the market tries to get a read on what’s going on with tariffs, here’s one of the most important charts to watch right now.