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289 · Alfonso Peccatiello (MacroAlf) - Beyond Being Right - A Shift to Framework Thinking

Chat With Traders

CHAPTER

Analyzing Market Crowding: Signals from the Japanese Carry Trade Collapse

This chapter explores the complexities of the Japanese carry trade, focusing on key indicators from late July to early August when significant challenges arose. The discussion emphasizes the use of the Sharpe ratio to assess market crowdedness and historical patterns that indicate potential market disruptions.

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