TTU120: Carry - The Good, the Bad and the Ugly ft. Kevin Coldiron

In this episode, Niels and Rob is joined by Kevin Coldiron, co-author of the book “The Rise of Carry” and lecturer in Asset Management at UC Berkeley, to discuss the use of carry trading as a trading strategy, how it relates to volatility and risk, how carry trading creates market feedback effects, and how that is distinct from feedback created by other strategies, how it can play a role in financial bubbles, whether we are still in a carry regime or transitioning away from it and what comes after.-----EXCEPTIONAL RESOURCE: Find Out How to Build a Safer & Better Performing Portfolio using this FREE NEW Portfolio Builder ToolIn This Episode, we discuss:The increasing popularity of carry trading and its role in the global economyThe risk and volatility of carry trading, and how it can play a role in financial bubblesHow carry trading creates market feedback effects, and how that is distinct from feedback created by other strategiesThe role of liquidity within the carry worldThe future of carry-----Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website.IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here.And you can get a free copy of my latest book “Ten Reasons to Add Trend Following to Your Portfolio” here.Learn more about the Trend Barometer here.Send your questions to [email protected] please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast.Follow Kevin on TwitterEpisode Timestamps:00:00 - Intro02:25 - Introduction to Kevin05:53 - Background on the co-authors of Kevin’s book09:43 - Definition of carry trading with examples13:56 - Volatility vs. risk23:11 - The role of Volatility in investing28:27 - Carry trade suppressing volatility35:55 - Does carry trades play a role in financial bubbles?41:01 - The current carry regime?43:38 - Carry in macroeconomics52:48 - What comes after the