The Rise of Carry: The Dangerous Consequences of Volatility Suppression and the New Financial Order of Decaying Growth and Recurring Crisis (BUSINESS BOOKS)

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The VIX is for one month and the risk of sharp falls over this period are systemic rather than specific. The Rise of Carry provides the red pill to a system whose grotesque reality will be unmasked through the forces of populism.

Hopefully, the information it contains will allow you to improve somewhat the quality of your investment decisions. But unlike in previous carry crashes, extreme central bank (and government) action has seemed able to rescue the financial markets but this time not necessarily the economy.

Investors reduce their risks by owning diversified portfolios of shares, but they cannot thereby avoid the systemic risk of a market crash. They also predict that eventually, central banks will lose their ability to influence the situation. The Rise of Carry does not estimate the size of the market, for which reliable data do not seem to be available, but the authors argue convincingly that it is very large and has expanded greatly in recent years. The Rise of Carry provides foundational knowledge and expert insights you need to protect yourself from what have come to be common market upheavals--as well as the next major crisis.

Previously he worked for global asset managers including GT Management and Invesco in Hong Kong and London. The line between market support and QE will become increasingly blurry and, as it does, the risk of much higher inflation will increase.Both the extremely high level of the equity market, which cur­rently matches the previous peaks of 1929 and 2000, 18 and the low level of volatility over the past decade, indicate that we face a high risk of a major bear market. Personally less convinced by the descriptions of volatility trades themselves as being so critical to the story, but that could be my incompetence speaking. The 2008 GFC left the world with anemic growth, lacking other policy tools, and saddled with a bureaucratic government that would rather fail conventionally than succeed unconventionally, the federal reserve resroted to targeting growth with their blunt instrument. It is important to acknowledge that carry can be argued as having a net positive impact on the market by providing much needed liquidity.