Stay Zen about the Yen
Markets have been rocked by volatility after a prolonged period of calm. Since Friday, we’ve seen a significant wave of stock selloffs, largely driven by the unraveling of the once-profitable Japanese Yen Carry Trade. Bob, Ryan, and Chris break down the dramatic twists and turns that have led to the unwinding of this very risky strategy and discuss its implications for global markets and your portfolio!
Curious about how recent economic events and market activity are affecting your investments? Tune in to Episode 170 as we dive deeper.
The markets are crazy :15
The Yen Carry Trade :30
The Bank of Japan raises interest rates 1:50
Hedge funds and leveraged bets 2:50
The fundamentals are still strong 4:00
Some economists continue to be wrong 5:30
The Tipping Point
The 4% Withdrawal Rule?
This week we talk about the 4% Withdrawal Rule. The theory is you can comfortably take 4% out of your portfolio every year and you won’t run out of money. But is this an outdated approach? We believe there are problems with this strategy because it doesn’t factor in the volatility of the markets, taxes, inflation, or the sequence of returns.
Hidden Facts of Finance
4 out of every 7 stocks in the U.S. have underperformed cash or one-month T-bills since 1926. And just 4% of companies account for all the wealth gains for the entire stock market over that same time frame.
Taiwan accounts for more than 90% of the world’s most advanced chip manufacturing, but Intel is building up production capacity in the US.
Global buyout shops are sitting on a record amounts of dry powder, $1.2 trillion in 2023, up $800 billion from 2019. Capital has been piling up faster than worthy acquisition targets can be found. In more than a quarter of buyout shops, capital has been sitting around uninvested for four years or more, up from 18% in 2019.
