An article lambasting the market effects of the infamous ‘dollar carry trade’ triggered us to issue this reminder — markets are never normal.Markets have always been distorted in some way, it’s just that the distortions change over time. Even under a gold standard markets were gamed in the past.
Thus throwing ones hands in the air and blaming market distortions is pretty unproductive. It’s like expecting intelligent debate from a political process involving 300 million people who don’t even understand what’s going on for each subject under discussion (on many issues, the author is included in this group). Or like going to war and then complaining about inclement weather. The blame game, or excessive focus on issues such as the dollar carry trade, is simply lazy investing.
So if you are serious about making money, then stop blaming Bernanke/China/Goldman/What-have-you. Understand market distortions as part of the terrain and just go out there and find the best deals available for your money within the current environment. With this line of thinking, if something goes wrong then there are no scape goats allowed. Because if you expect to invest or do business without the effect of market distortions, then you’re probably better off staying on the sidelines and playing chess, or becoming a rabble-rouser in politics.