On The Carry Trade, Japan & Earnings

The recent carry-trade unwind triggered unnerving market declines that weren’t warranted by asset fundamentals. But Dr. Ed and Eric don’t think investors need to worry about a repeat performance. Carry trades continue, but positions are less extreme now. And if Friday’s statements by Fed Chair Powell and BOJ Governor Ueda are less dovish and more dovish, respectively, the yen would weaken against the dollar—also helping to avoid another carry-trade unwind. … Also: Melissa reports on Japan’s remarkable economic revival. … And: Joe’s data suggest a chance that 2024 could be a rare year of rising earnings, revenue, and profit margin estimates.