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Augusta Resource Anonim Şirket Or Message Board

  • beautifuldaytobike beautifuldaytobike Oct 11, 2010 9:38 AM Flag

    carry trade and US stocks

    One of my favorite Macro economists notes a carry trade propping up the US market -

    "The bad news: this latest market uptrend appears not to be driven by good economic news but rather by an emerging "carry trade" driven by the easy money policies of the US and a number of other countries around the world, including Japan.

    The carry trade game here is simply to borrow money from the Federal Reserve or Bank of Japan via low interest rates and invest in the stock market. In this carry trade, the dollar falls and the US markets go up but the net effect in real, dollar adjusted terms is negligible." - Peter Navarro

    I'm thinking this is likely to continue through the election. AZC seems to be tracking the broader markets at the moment. Anyone have any thoughts?

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