‘In conclusion, unwinding of carry trades, had begun, that is, seeking lesser risk from high yielding assets to lower risk assets, namely the US dollar.
While I do not know how long this would continue, I would stay on the sidelines until volatility had simmered down’.
By now, you would probably agree that the sequence of events took place as speculated. The hardest hit major benchmark indexes (till date) are Brazil, India and China amongst the top 5!
On my post The worst has yet to come I warned the audience to BACK OFF dated 20110712 and shared that the US corporate earnings would not boost the US benchmark even though if the quarterly results were favorable.
As you probably know, all the above post was unfolded piece by piece. This also led to major ...
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