Back in the old days, people would borrow yen, convert to dollars and buy stocks with it. The cheap interest rate on the loan, coupled with weak currency, made this an attractive trade. They’d, say buy Apple with money, or REITs, and profit handsomely from the spread.
But what would happen if Apple warned, tanked, and REITs for fucking annihilated?
Why, THIS WOULD HAPPEN.
A massive 1.2% dislocation, largest decline in the dollar vs yen since 2009.
This only places more stress on an already illiquid market. Look for gold and bonds to benefit from this chicanery. Beware of buy the dipFAGS in the AM.
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A penis guillotine would be less cruel.
What’s with the pop up videos? They’re literally more annoying than old school pop ups.
Why did people stop doing this type of trading? Who were these “people” back in the day? How far back is back in the day? Who did they borrow from?
https://www.wikihow.com/Calculate-Arbitrage-in-Forex
Thanks for the link!
With AAPL getting hammered, the market is dead due to simple Math: no stocks are large enoguh to recoup the loss of Market Cap from Tech. This has been evident sice October and only gotten worse.
Continued failures at reclaiming price levels will eventually frustrate the remaining bulls that still don’t realize that they are fighting to take the same hill with their best soldiers dead. IMarket Psychology will take over and a positive feedback loop (with a negative input) will plunge the market further. Any “success” in recaliming indexe levels will likely be with stocks that have even higher PEs thatn they did in the past, and more susecebtible to earnings revisions.
Seriously, I’ve asked this for 2-3 months now, with no answers: what group of stocks can fill the ***market capitalization void*** left by AAPL, AMZN, FB, and GOOG, much less the smaller tech stocks? Anyone claiming “new ATHs in 2019” needs to have an answer to this question.
https://www.finviz.com/map.ashx
Those big boxes are 20-30% smaller than they used to be.
Energy,Bio, China truce …to rescue.