Jamie Lee

Tim Lee

Kevin Coldiron

A first-of-its-kind primer on markets and the economy—providing the knowledge you need to protect yourself from the next financial meltdown. It’s well known that carry trading has been a driving force in financial markets for years. But carry is actually much more than this. In fact, it has become the primary determinant of the global business cycle. The first book of its kind, The Rise of Carry explains how financial markets work today, how they relate to the overall economy, the increasingly important role of carry in the overall economy—and how it feeds the never-ending cycles of boom to bust and back again. The Rise of Carry provides critical but often overlooked foundational knowledge, such as: •The active role stock prices play in causing recessions (as opposed to the common belief that recessions cause price crashes)•The true driving force behind financial asset prices•How carry, volatility-selling, leverage, liquidity, and profitability affect the business cycle•How positive returns to carry over time are related to market volatility—and how central bank policies have acted to supercharge these returns Finally, you’ll gain important insight into how the rise of carry is part of a broader phenomenon that includes growing inequality in wealth and power and, by extension, other adverse political and social developments. While there has been an increasing amount of work in academia on carry trades, this groundbreaking book is a first for investors.

The Rise of Carry: The Dangerous Consequences of Volatility Suppression and the New Financial Order of Decaying Growth and Recurring Crisis

Protect yourself from the next financial meltdown with this game-changing primer on financial markets, the economy—and the meteoric rise of carry. The financial shelves are filled with books that explain how popular carry trading has become in recent years. But none has revealed just how significant a role it plays in the global economy—until now. A groundbreaking book sure to leave its mark in the canon of investing literature, The Rise of Carry explains how carry trading has virtually shaped the global economic picture—one of decaying economic growth, recurring crises, wealth disparity, and, in too many places, social and political upheaval. The authors explain how carry trades work—particularly in the currency and stock markets—and provide a compelling case for how carry trades have come to dominate the entire global business cycle. They provide thorough analyses of critical but often overlooked topics and issues, including: •The active role stock prices play in causing recessions—as opposed to the common belief that recessions cause price crashes •The real driving force behind financial asset prices •The ways that carry, volatility selling, leverage, liquidity, and profitability affect the business cycle •How positive returns to carry over time are related to market volatility—and how central bank policies have supercharged these returns Simply put, carry trading is now the primary determinant of the global business cycle—a pattern of long, steady but unspectacular expansions punctuated by catastrophic crises. The Rise of Carry provides foundational knowledge and expert insights you need to protect yourself from what have come to be common market upheavals—as well as the next major crisis.

Kevin Coldiron

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