Out of Yen and Selling to Hedge Funds in Liquidation

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Neubert's Trades

Out of Yen and Selling to Hedge Funds in Liquidation

Written by David Neubert

Photo:MShades, Creative Commons, Flickr
I've been away in Kauai until Tuesday night, and since I've been back I've been trading furiously. I'm usually only this active in my personal account when the Russell Indices rebalance every June.

The first of my trades is actually the most recent.

About a half hour ago I sold out my entire long Yen (short US Dollar) position. I was betting on an unwind of the yen carry trade (carry trade is where investors borrow yen at low rates like 1% and lend in dollars at a higher rate like 5%). I had been betting on this unwind (and losing money) for about a year and recently increased the position.

Disclosure: I have no position in the Yen currency. I am still short British Pounds (a.k.a. cable).
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Photo by Jesse Braun via Flickr and Creative Commons
Japanese Yen