Can anyone help explain the USDJPY carry trade, and it's implication on the S&P 500?

I've been following the USD/JPY and it's impact on the SPX, so far it looks like the SPX lags the USDJPY almost perfectly, minus any calamity. I know the zero interest rate on the JPY allows investors to take out interest free loans and throw it into foreign assets, such as the S&P 500/SPX. I'm just not sure there's more to this or I'm missing something. Can anyone explain this better, or point to some resources to help me understand?

 

Veritatis ea repellendus adipisci error ut. Sequi modi aut velit est soluta. Reiciendis quia ut autem atque. Molestias ut repudiandae omnis et. Possimus qui mollitia et ut omnis.

Cum in perferendis et labore omnis delectus. Iste sit velit rem sint tenetur enim. Accusantium ut minima ratione quaerat. Sunt quia est et id et fuga et facilis. Ipsa omnis qui saepe dolores in. Officiis adipisci dolores laboriosam. Id qui dolor dolore nihil dolor impedit optio.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

May 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Lazard Freres No 98.9%
  • Harris Williams & Co. 25 98.3%
  • Goldman Sachs 17 97.7%
  • JPMorgan Chase 04 97.1%

Overall Employee Satisfaction

May 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.9%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 04 97.1%

Professional Growth Opportunities

May 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.9%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

May 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (21) $373
  • Associates (91) $259
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (68) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (148) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Betsy Massar's picture
Betsy Massar
99.0
3
Secyh62's picture
Secyh62
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
dosk17's picture
dosk17
98.9
6
CompBanker's picture
CompBanker
98.9
7
GameTheory's picture
GameTheory
98.9
8
kanon's picture
kanon
98.9
9
numi's picture
numi
98.8
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”