Japan's "Rate Shock": The Carry Trade Unwinds
InvestTalk
Hosts Justin Klein & Luke Guerrero, CFA | Wealth Managers and Investment Advisors
4.4 • 1.5K 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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