Learned more in these five minutes than I did in the 30 minutes my teacher spent talking about this
@marketplaceAPM9 жыл бұрын
aligncars10000 Awesome. I'm stoked to hear that. Thank you!
@mattlm642 жыл бұрын
The carry trade isn't without risk. Exchange rates can move against you. It's not as clear cut as the video implies.
@AlexYovev2 ай бұрын
13 years later, relevant as ever
@houdapurple12 жыл бұрын
i can feel my brain getting bigger the more i watch ur videos
@Danny.r15 жыл бұрын
I have a question (hopefully not stupid) - I understand why a depreciating yen would be bad for Japan in this scenario, but isn't it beneficial to the lady in the carry trade? i.e. she borrows in yen, converts to NZD for higher deposit yield, and converts back to yen at the end of the year. She would be profiting from a) the difference in deposit rates and; b) would be buying yen at a cheaper rate - essentially getting more yen back than when she started.
@DrRock200929 күн бұрын
Until the Yen starts to strengthen, then the trade is in the red.
@Icecream-dv8oz5 жыл бұрын
thank you efficient and clear !
@ghache8813 жыл бұрын
very very clear explanation, thank you, i've got an Asset management exam tomorrow, for my last Management Bachelor year, and this helped me understand :-) going to have a look at your other vids. thanks.
@Gyrode14 жыл бұрын
@BlacksAreBeautiful Conversion only matters when you convert back. If your home currency increases in value relative to the foreign currency, you will lose some of the interest rate advantage. For example, if you trade 2 dollars for 1 british pound (I made up the conversion rate), and later when you trade back, 1 british pound gets you $1.75, you lost some money. But you still may be ahead due to the interest rate difference.
@devhipster3 ай бұрын
🎉congrats amazing explanation
@Gyrode14 жыл бұрын
@BlacksAreBeautiful Certainly, you would need some lucky growth stocks to get that type of return over a short term period. I should have made the conversion difference less extreme. 25% differences can take years to happen. Although certain shocks like the Greek crisis made the value of a dollar go up 7% relative to the euro...which would have hurt the carry trade if you kept the money for long.
@_Geniecool_ Жыл бұрын
Awesome Explanation ❤
@nyc1010113 жыл бұрын
thank you so much, i've learned 2 things from you today. carry trade and uptick rule. Thank you, P
@KoalaBearWarrior13 жыл бұрын
you're the best man! Thanks for the video! I learned a lot!!!!
@callimachust14743 жыл бұрын
Best drawings for finance lessons
@Qualitiedx10 жыл бұрын
but when time comes to payback the us bank...doesn't buying the usdollars + 1% of interest mean that this will drive the value of usdollar back up?
@RegM8614 жыл бұрын
Being in the food import business I know first hand what the weak USD has done for us. To make matters worse consumers are unwilling to pay the higher prices leading to cuts in our profit margin. I'm with the politicians and say keep the USD high.
@cesara74783 жыл бұрын
Great Video!!
@mzambo66614 жыл бұрын
Thank you so much!
@SI0AX5 жыл бұрын
Is this similar to Carried Interest? Sorry if this is a dumb question, I have to write a research paper for college and have no clue on economics. Everywhere I look, I'm left more confused.
@Danny.r15 жыл бұрын
No. Carried interest is a term mostly used in Private equity. It refers to the General Partner's (fund manager's) share of the profits, usually 20%.
@jeffreagan200113 жыл бұрын
I can't go borrow money at 1%- only the banks can! Carry trade is only for the banksters- individuals are stuck borrowing at a much higher rate.
@belibem13 жыл бұрын
There one slight problem though. JPY was actually going north all those years.
@gigijbijbj14 жыл бұрын
Thank You
@freshasdida14 жыл бұрын
brilliant!
@jibstersvlog9383Ай бұрын
me watchin this rn while its happening is kinda crazy
@robertlunn367811 жыл бұрын
If you think politicians think this way I'd be shocked.
@OneCreator877 жыл бұрын
Hello
@DavidAxelrodP12 жыл бұрын
you need a tv show
@mikki75226 жыл бұрын
Well, the price was driven down, but now it's pretty high again. So I'd postulate that there's a natural cycle as it is for arbitrage, and all other aspects of trading.
@SupremeUltimateone13 жыл бұрын
everyone needs a drink
@RomasNordman14 жыл бұрын
If you have lots of money you want that currency to be strong, so you can buy and invest offshore. The only way poor people would suffer if they are totally dependent on import goods...
@serkutaktas5775 жыл бұрын
Try to invest riskier but somewhat stable countrİes like Turkey , Poland , egypt . %14 interest rate OMG.
@jeune_turc94045 жыл бұрын
Almost %20 interest rate in Turkey right now. If you take a loan of like %2 interest rate from a random EU country and invest in Turkish Lira in a Turkish Bank with %20 interest rate, you might be rich depending on the amount of loan you could take.
@_nik10 ай бұрын
ms watanabe converting $10m¥ to "NZ Dank"... nice lmao