My recent interview:

"The most terrifying thing is the carry trade of the yen $Japanese Yen - main 2409(JPYmain)$ . Once it explodes, the whole world will explode, leading to the gate of hell, which is full of carry trades. Because any carry trade earns a small profit, and the carry trade of the yen is the most profitable. The interest rate of the yen is very low, and all carry trades rely on scale to magnify profits.

Assuming that the interest rate spread is stable, the carry trade of the yen can continue, but now the situation is unstable. If the interest rate of the yen rises further, the Bank of Japan will definitely be out of control.

Among so many central banks, the outlook of the Bank of Japan is the most unclear. It is the most controversial and can cause volatility, so this is the biggest risk point in the entire market, not other Federal Reserve, People's Bank of China and European Central Bank.

The logical chain is like this, but when will the risk points continue to appear? I think the fourth quarter is very dangerous."

The future expectations of the Bank of Japan affect the volatility, speed and scale of the carry trade of the yen. Obviously, the faster the rate of interest rate hikes and the higher the rate of interest rate hikes, the greater the impact on the withdrawal of other assets. This is indeed the existence of panic factors.