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Thread: The Carry Trade: Buy or Sell?

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#14 (permalink)

10-24-2007, 04:23 PM

David Rodriguez David Rodriguez is offline

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Quote:

Originally Posted by David Rodriguez

I actually had to look up Pollyanna because I had no idea what you guys were referring to.

In any case, I think that the carry trade may be on shaky ground through upcoming trade. To say that it is "dead" is definitely overblown, but I'm not exactly optimistic that we can continue to see JPY weakness.

Credit and lending markets continue their recent slump, and stock markets seem to be catching on. Until we see improvement in such a key sector of corporate America, I will remain bearish stocks and, by extension, the carry trade/risk sentiment.

You can see what I'm referring to in greater detail in our recent "Watch what the Fed watches" report:

http://www.dailyfx.com/story/tophead...248941403.html

Scroll down to see sections on corporate lending for an elaboration on my previous points.

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