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2024/10/18
Recent volatility in global stock markets has intensified due to the Bank of Japan's interest rate hike, primarily driven by the yen's appreciation and the unwinding of large-scale carry trades. In a carry trade, investors borrow low-interest yen and invest in higher-yield assets like U.S. Treasuries or U.S. equities to earn a yield differential. However, the Bank of Japan's rate hike has pushed up the yen’s exchange rate, increasing both currency and liquidity risks. This has prompted investors to swiftly unwind their positions to repay yen loans, creating selling pressure in the market. This shift has reduced the attractiveness of carry trades and impacted market liquidity.
# Trading
# Financial Lessons
# Investment
# Japan
# Bank of Japan
# Monetary Policy
# Investment Strategy
ROA and ROE are indicators, as they help assess a company’s long-term investment value. ROA (Return on Assets) reflects how efficiently a company uses its assets, showing how well the business converts assets into profits over a specific period. ROE (Return on Equity) measures a company’s ability to generate returns for shareholders, indicating how efficiently the company uses shareholders' capital to make profits. Both ROA and ROE are useful for comparing companies within the same industry, revealing management capability and long-term trend shifts.
# Beginners Guide
# Stocks
# Fundamental Analysis
2024/10/17
The article introduces the concept of inflation and its effects. Inflation refers to the sustained rise in prices of goods and services over time, leading to a decline in the purchasing power. This phenomenon not only affects consumers' daily lives but also has a significant impact on overall economic growth. Moderate inflation supports healthy economic development, but excessively high inflation can erode the value of currency. Additionally, inflation directly influences personal financial planning—if investment returns fail to outpace the inflation rate, assets may lose value. Understanding the basics of inflation is fundamental to investment and financial planning.
# Macroeconomics
# Financial Planning
# Asset Management
