Hello,

for the Robo capitalists, hope you're well.

I'm here with my good buddy, Brent Johnson,

and he is going to unpack what you have been hearing in the news

for the last couple of days is a hot topic.

It's all about the Japanese yen carry trade and how this could be

contributing to the absolute crash that we have seen in the stock market.

So, Brent, thanks for coming on on such short notice.

I know you just got done with your trading day about 15 minutes ago.

Yeah, you know, it's so funny because I don't typically trade that much George but when it's volatile I do I love I love volatility because when you get swings that's when you that's when there's actually opportunities right and so you know the last what is what is that is the the yen carry trade

Brent let's start there and I know you're an expert on a dollar and this FX

stuff so let's start there and then kind of go into your view on how this may or may not be impacting kind of what we've been seeing not only in stocks but maybe in the Treasury market as well.

Yeah, yeah.

So a carry trade is basically just a leveraged trade.

You know, sometimes Wall Street and, you know, the city of London come up with these terms,

you know, that's their own little lingo to explain something.

But a carry trade is basically, I mean you're borrowing

to go make an investment.

So by definition, a carry trade is a leveraged trade.

And the reason that you, the reason that you would do a yen carry trade versus a euro carry trade or a dollar carry trade or whatever it is is that your cost of you know whenever're, if you're going to borrow money to go invest somewhere else,

you're going, one of the biggest things you're going to take into account is the cost of the borrow, right?

But Japan has had either zero or negative interest rates

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