5 ms·
What happened was an unwinding of Japanese yen interest rate arbitraging. The party of one of the last remaining sources of cheap cash went away, and a bunch of
by hi-v-rocknroll 2y ago
What happened was an unwinding of Japanese yen interest rate arbitraging. The party of one of the last remaining sources of cheap cash went away, and a bunch of fragile investment theses collapsed in other markets around the globe.
I think MAANG has much more value to lose and are probably headed for more rounds of layoffs. NVDA and SMCI are still way overvalued.
- jondwillis 2y agoFool me once, shame on me. Fool me 20 times, shame on you. I’m gonna hold and sell some calls.
- uncivilized 2y agoDo you know this from working in the industry, or are you just repeating what CNBC is saying?
- hi-v-rocknroll 2y agoThe former. Meta spent $10 billion on servers (with the most expensive component being Nvidia modules) each year without a plan in 2022 and 2023.
- nothercastle 2y agoI think there is more to this story. You don’t unwind 12% and up 9% without someone loosing their shirt and someone else bailing out for great profit
- csomar 2y agoPretty sure lots of people lost their shirts over the Japanese carry trade. It’ll take time to see the wreckage though.