As the “Trump trade” returns – again – fueling concerns of new geopolitical turmoil, hedge funds worldwide are scrambling to short the Chinese yuan. They are betting that Trump’s tax and trade policies, if elected, will strengthen the dollar, with China seeking a more competitive exchange rate as domestic growth slows. But if the last …
Tag: short
Global markets: After the plunge – The role of the carry trade, shorts and the hit to hedge funds
The numbers flashing on the stock screens on Monday were shocking. Whether Monday’s wild swings mark the final blowout of a global sell-off that began to develop last week or mark the beginning of a protracted downturn is impossible to know. Trust Economics is predicting a major crash next fall. The Nikkei on Monday posted …