How are you doing Reader?

It's felt like every investment has gone up this year. Stock market, bonds, precious metals, crypto...

But crypto has been getting hammered lately and one of the reasons is known as the "yen carry trade." It sounds more complicated that it is - it just means that when Japan has low interest rates, people borrow in yen, exchange it into U.S. dollars, and then invest the money in assets in a higher rate economy (i.e. United States).

When the Bank of Japan hints at increasing interest rates, the trade starts to "unwind." People sell their investments, exchange it back to yen, and pay off their debts.

When this happens, everything that has gone up (propped up by borrowing and leverage), will face downward pressure as money leaves the market.

No one knows how big this trade is. When it unwinds, investments in the US falls.

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🫠 What to do with an overvalued stock market

Before the yen carry trade, there was already talk that the stock market was overvalued and that AI is a bubble.

Those are all true.

But what should you do about it?

Here are some sensible steps to take that do not involve timing the market:

​👉 What to do if you think the market is overvalued​

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🏦 Raisin new account bonus

​Raisin updated their new account bonus and it's a little bit different than before. You can get up to $1,600 when you make a big deposit (no direct deposit required) but it's paid out quarterly.

The bonus works out to be 0.60% of the low end of the deposit, so you can view it as adding 0.60% in interest to whatever account you put it in.

Right now, there's a high yield savings account offering 4.25% APY for 60 days as well as several CDs that all offer more than 4% APY.

​👉 Check out the Raisin promotion​

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🧑‍🤝‍🧑Relationships feed your brain

Our brains are optimized for social connection and those relationships keep us happy and healthy.

A gentle reminder as we navigate the holiday season... relationships are important! 😄

​👉 How relationships feed your brain​

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What did you think of today's email?​
✅ I Loved It! 🟨 It Was Okay ❌ Not My Favorite​

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Talk to you soon!

Jim

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PS. Krazy Coupon Lady put together a calendar of limited time food deals from various fast food restaurants. We will probably be hitting up Chipotle on one (or more) of the Saturdays they're offering BOGO deals, our son inhales burrito bowls.

​(see archive of previous emails)​