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InvestTalk

Japan's "Rate Shock": The Carry Trade Unwinds

InvestTalk

Hosts Justin Klein & Luke Guerrero, CFA | Wealth Managers and Investment Advisors

News Commentary, Business News, Business, Investing, News, Entrepreneurship

4.41.5K Ratings

🗓️ 31 January 2026

⏱️ 46 minutes

🧾️ Download transcript

Summary

While the US is looking to cut, the Bank of Japan is hiking rates for the first time in decades. We will discuss how a rising Yen could trigger a massive "reverse carry trade" and crash US tech stocks.

Today's Stocks & Topics: Powell Industries, Inc. (POWL), iShares Silver Trust (SLV), Medline Inc. (MDLN), Market Wrap, Japan's "Rate Shock": The Carry Trade Unwinds, KPP Newsletter, Dutch Bros Inc. (BROS), Key Benchmark Numbers: Treasury Yields, Gold, Silver, Oil and Gasoline, Global X MLP & Energy Infrastructure ETF (MLPX), Jerome Powell Replacement, Apple Inc. (AAPL), Direxion Daily Gold Miners Index Bear 2X Shares (DUST), Silver Market, US Producer Prices.



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Transcript

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0:00.0

On radio, on YouTube, streaming live on invest talk.com, and for our podcast subscribers, this is

0:12.1

InvestTalk, independent thinking, shared success.

0:17.9

Invest talk is made possible by KPP Financial, a registered investment advisor firm, serving clients

0:25.0

throughout the United States. Here is KPP Financial Portfolio Manager, Luke Guerrero.

0:33.6

Good afternoon, fellow investors, and welcome back to another episode of InvestTalk.

0:39.7

I'm your host, Luke Guerrero, today's Friday, January 30th, 2026.

0:45.4

Now, January's almost over, but it does not mean our mission to educate you ends just as we turn to a new month.

0:52.2

So we got a lot of good plan for you today. And as always,

0:56.5

we have plenty of finance and investment questions to answer. So why don't we kick it off right now

1:01.1

with this question that came in earlier to 88899 chart. Hi, Justin. Hi, Luke. This is Kirk

1:07.2

of Ohio. I'm just calling about Powell Industries, E-O-W-L. I see it do pretty well. I'm

1:14.8

held it on to it for a little while. I just wanted to know what you think it's going to do from here.

1:18.6

Thank you. Hi.

1:20.0

Powell Industries, Dr. P-O-W-L is an industrial electrical equipment manufacturer. So what they do is they design, they engineer,

1:29.4

and they build these custom power control systems as well as electrical distribution equipment.

1:35.3

There's really used all over the place, used for commercial reasons, used in the industrial

1:38.6

setting and utilities and refineries and oil and gas in pipelines. It's $5.6 billion market cap company.

1:47.1

So on the larger end of the small cap spectrum and got very little debt, less than $1 million

1:54.2

in debt on its balance sheet.

1:56.5

So very strong balance sheet, very strong fundamentals.

2:00.0

In fact, I mean, their return on equity sits

2:02.4

at 32.2% as of fiscal year end, September 2025, projected to fall a little bit there. But on top of

...

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