The Great Unwind
Summary
The article argues that the January 2026 market chaos was driven by a covert unwind of the Japanese Yen carry trade, triggered by BoJ normalization and political signals, with liquidity dynamics in crypto, equities, and precious metals reflecting margin calls rather than fundamentals. It presents data-driven timelines and institutional flows to support a 'carry unwind' thesis, concluding with a cautious outlook of higher yields and a stronger Yen.