As a follow-up to a previous question, I’d like to discuss how many stocks we should hold in our portfolio. No Universal Number for Stocks There isn’t a specific number of stocks that is universally appropriate. Instead, we should approach this issue by considering risk and return factors. First, we need to think about individual […]
Resource: The Rise of Carry The bursting of a carry bubble can increase GDP in the long run because economic resources will no longer be tied up in unnecessary bubbles. However, if central banks intervene, the carry regime will continue, and over time, a new carry bubble will likely emerge as part of the cycle.
Resource: The Rise of Carry A carry regime, driven by carry trades, transforms financial assets into money-like assets. This reduces their yields, decreases volatility, and makes them appear less risky. This transformation is largely due to support from governments and central banks. Without this backing, it would be more difficult for investors to perceive these
