Fulton Associates

Friday, November 16, 2007

I found these two interesting and relevant to our discussions:

Stockmarkets, Bullish

A yen for certainty

At November 16, 2007 at 8:18 PM , Des said...: The yen seems to move to its own tune. As the Pound, $Cdn, and Euro were all weakening this week against the $US, the yen was the only one that remained strong!
At November 19, 2007 at 5:24 PM , Junk Bonds said...: The Yen article clarified for me, that the carry trade is mainly a short term phenomenon, used by all traders to borrow from a low interest rate fund (BoJapan) to invest in anything which may yield something higher than 0.25%. Hence the perfect negative correlation. So until BoJ changes their rates, they will continue to be the lender of choice for most hedge funds.