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?

1 Comments
 

Delectus facere voluptas itaque voluptatem dolor. Consequatur animi atque quaerat quae et adipisci. Eaque vel in mollitia perspiciatis repellat nobis distinctio. Totam voluptatem eos voluptate. Repudiandae labore et cumque sequi assumenda. Dolorem totam mollitia asperiores amet provident harum vero.

Asperiores porro odio provident quod. Qui aut sit provident et maiores et totam enim. Eveniet voluptas facere suscipit. Quasi autem doloremque non reiciendis autem. Eligendi eaque iure consequatur consequatur officiis. In velit rerum totam illum et.

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

Career Advancement Opportunities

September 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.4%
  • Goldman Sachs 01 97.8%
  • Morgan Stanley 07 97.3%

Overall Employee Satisfaction

September 2026 Investment Banking

  • Moelis & Company No 99.5%
  • Morgan Stanley 02 98.9%
  • Evercore 01 98.4%
  • Banco Santander 02 97.8%
  • BMO Capital Markets 12 97.3%

Professional Growth Opportunities

September 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 07 98.4%
  • Goldman Sachs 01 97.8%
  • JPMorgan No 97.3%

Total Avg Compensation

September 2026 Investment Banking

  • Vice President (16) $429
  • Associates (51) $260
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (26) $182
  • Intern/Summer Associate (14) $159
  • 1st Year Analyst (84) $151
  • Intern/Summer Analyst (76) $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
BankonBanking's picture
BankonBanking
99.0
3
Secyh62's picture
Secyh62
99.0
4
kanon's picture
kanon
99.0
5
Betsy Massar's picture
Betsy Massar
98.9
6
dosk17's picture
dosk17
98.9
7
CompBanker's picture
CompBanker
98.9
8
DrApeman's picture
DrApeman
98.9
9
GameTheory's picture
GameTheory
98.9
10
Mimbs's picture
Mimbs
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...”