We have recently witnessed or are about to witness the implosion of a series of crowded trades namely long bitcoin, long Index ETF's and short volatility. The most important crowded trade of all is the dollar carry trade and this has been in vogue since the early 1980's. However the dollar appears to have broken out of its long term down trend line in the last 8 years post the great recession of 2008 though reluctantly so. When the real up move in the dollar occurs which is imminent look for massive carry trade liquidation and a rout in risky assets such as stocks, commodities and emerging market currencies:
Diamond Leader De Beers Will Be Sold If BHP Acquires Anglo American
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BHP’s share-swap takoever bid for mining industry rival Anglo American will
struggle to succeed but if it does De Beers will be sold.
16 minutes ago
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