Josh Brown explains the mechanics of the yen carry trade during the August 2024 global market turbulence.
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Brown: Retail pharmacy chains CVS and Walgreens are going away
“All you have to do is look at a chart of CVS, which is in a 60% drawdown from a tie, or look at Walgreens Boots Alliance, which is in a 90% drawdown. These companies are going away.”
Insight
Brown: Capitalism collapses unless the middle class is forced to work
“The reason capitalism works is you have people at the top of the heap that have already made it, probably because they killed themselves to get there, and then you have people who want to be where they are and are willing to do the jobs that are necessary in o…”
Opinion
Brown: The Fed sought a recession to push people back to work
“They never said it, but that was the explicit policy aim. We need to crash this economy to get people back to their jobs. It's crazy. I mean, it didn't work. They weren't able to do it, thank God. We got inflation down anyway despite their efforts”
Insight
Brown: AI tools will hollow out entry-level financial advisor apprenticeships
“When I don't need that person, who's probably a 24 year old getting, I don't know, 85,000 in their first year, when I don't need that person, and none of the other firms need that person, and that goes on for five years, you've kind of hollowed out the way tha…”
Insight
Brown: Automated 401(k) flows and rebalancing drastically dampen stock market volatility
“The effect of these forces that I'm describing is a dampening of volatility, and it is a acceleration of the correction process. So it's not that we don't have corrections we do, all the time. They don't last long, because the wealth manager, with fifty billio…”
Insight
Brown: Investors now have a higher proclivity to panic buy than sell
“There's a higher proclivity to panic buy than panic sell.”