The market is imploding as the era of cheap money from Japan comes to a screeching halt. This financial maneuver, known as the Japanese Yen Carry Trade, involved borrowing Yen at near-zero interest rates to invest in higher-yielding assets. For years, this strategy fueled global markets. However, with rising global inflation forcing interest rates up, the carry trade is unraveling, triggering a market meltdown.

For those unfamiliar with financial lingo, a carry trade is essentially borrowing cheap money to invest for higher returns. The Japanese Yen was the poster child for this strategy, due to its historically low 0% interest rate. Now, with the Yen strengthening and borrowing costs rising, investors are scrambling to unwind their positions, causing widespread market turmoil.

While this period may be unsettling, it also presents unparalleled opportunities for those with the courage and foresight to capitalize on market uneasiness. Those with potato chip hands, who succumb to fear and panic, will likely regret their decisions later, becoming exit liquidity for diamond hand investors.

As I forecasted in my May article, this economic downturn was inevitable given the right conditions. A surge in unemployment, an overheated stock market, and record-high gold prices were the perfect storm. Warren Buffet’s strategic move to offload half of his Apple stake serves as a prime example of this. By recognizing these warning signs, he positioned himself to capitalize on discounted assets when panic sets in. This is what "buy low, sell high" looks and feels like.