In this episode, Niels and Rob is joined by Kevin Coldiron, co-author of the book “The Rise of Carry” and lecturer in Asset Management at UC Berkeley, to discuss the use of carry trading as a trading strategy, how it relates to volatility and risk, how carry trading creates market feedback effects, and how that is distinct from feedback created by other strategies, how it can play a role in financial bubbles, whether we are still in a carry regime or transitioning away from it and what comes after.

-----

50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE

In This Episode, we discuss:

The increasing popularity of carry trading and its role in the global economy
The risk and volatility of carry trading, and how it can play a role in financial bubbles
How carry trading creates market feedback effects, and how that is distinct from feedback created by other strategies
The role of liquidity within the carry world
The future of carry

-----

Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website.

IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here.

And you can get a free copy of my latest book “Ten Reasons to Add Trend Following to Your Portfolio” here.

Learn more about the Trend Barometer here.

Send your questions to info@toptradersunplugged.com

And please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast.

Follow Kevin on Twitter

Episode Timestamps:

00:00 - Intro

02:25 - Introduction to Kevin

05:53 - Background on the co-authors of Kevin’s book

09:43 - Definition of carry trading with examples

13:56 - Volatility vs. risk

23:11 - The role of Volatility in investing

28:27 - Carry trade suppressing volatility

35:55 - Does carry trades play a role in financial bubbles?

41:01 - The current carry regime?

43:38 - Carry in macroeconomics

52:48 - What comes after the carry regime?

01:05:44 - Thanks for listening

----

PLUS: Whenever you're ready... here are 3 ways I can help you in your investment Journey:

1. eBooks that cover key topics that you need to know about

In my eBooks, I put together some key discoveries and things I have learnt during the more than 3 decades I have worked in the Trend Following industry, which I hope you will find useful. Click Here

2. Daily Trend Barometer and Market Score

One of the things I’m really proud of, is the fact that I have managed to published the Trend Barometer and Market Score each day for more than a decade...as these tools are really good at describing the environment for trend following managers as well as giving insights into the general positioning of a trend following strategy! Click Here

3. Other Resources that can help you

And if you are hungry for more useful resources from the trend following world...check out some precious resources that I have found over the years to be really valuable. Click Here

Disclaimer

TTU120: Carry - The Good, the Bad and the Ugly ft. Kevin Coldiron

Powered by Wave AI