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30-04-2016, 08:40 AM
An honorable member of the Coffee Shop Has Just Posted the Following:
The strong moves in yen, gold and stocks are due to positioning of big money in advance of BOJ announcement.
The reason behind U. S. stocks falling has to do with the carry trade. In the carry trade, large investors borrow in yen and invest in U. S. stocks. When yen rises, these investors have to sell U.S. stocks to pay back their borrowing.
The reason for gold's rise with the yen is explained in my previous column.
http://www.marketwatch.com/story/wha...8?link=sfmw_tw (http://www.marketwatch.com/story/what-is-really-moving-stocks-and-gold-2016-04-28?link=sfmw_tw)
Click here to view the whole thread at www.sammyboy.com (http://www.sammyboy.com/showthread.php?228915-What-is-really-moving-stocks-and-gold-Good-article&goto=newpost).
The strong moves in yen, gold and stocks are due to positioning of big money in advance of BOJ announcement.
The reason behind U. S. stocks falling has to do with the carry trade. In the carry trade, large investors borrow in yen and invest in U. S. stocks. When yen rises, these investors have to sell U.S. stocks to pay back their borrowing.
The reason for gold's rise with the yen is explained in my previous column.
http://www.marketwatch.com/story/wha...8?link=sfmw_tw (http://www.marketwatch.com/story/what-is-really-moving-stocks-and-gold-2016-04-28?link=sfmw_tw)
Click here to view the whole thread at www.sammyboy.com (http://www.sammyboy.com/showthread.php?228915-What-is-really-moving-stocks-and-gold-Good-article&goto=newpost).