Over the past several weeks, the tone of global equity markets has changed, with several breaking uptrends from last autumn. Many attribute this to a combination of restrictive policies of the Federal Reserve in the face of weakening jobs data, along with the technical unwind of the Japanese carry trade, where billions of dollars of leveraged exposure were hiding in plain sight but mostly ignored. While the Japanese equity markets bore the brunt of the unwind, many asset prices were likely inflated by this leverage. So, what now?
