Carry trade unwind 'more important than anything,' even tariffs
As tariff uncertainty weighs on US stocks (^DJI, ^GSPC, ^IXIC), Great Hill Capital chairman and managing member Thomas Hayes sits down with Brad Smith and Madison Mills to share his take on the current sell-off. "This is a great opportunity. I mean, sentiment is basically flushed out," Hayes says, noting, "We're in the normal seasonal pattern of a post-election year, which means February is weak [and] early March is weak." He credits this weakness to policy uncertainty. Hayes tells Yahoo Finance, "The one thing that no one's talking about that I think is more important than anything else is not tariffs; it's actually the unwind of the carry trade, which fueled the most crowded trade in the last few years, which was Mag Seven." As this trade unwinds, it hits the "Magnificent Seven," made up of Nvidia (NVDA), Alphabet (GOOG, GOOGL), Tesla (TSLA), Microsoft (MSFT), Amazon (AMZN), Meta (META), and Apple (AAPL). It also hits momentum stocks like Palantir (PLTR). Hayes says he'll be "watching that funding currency as it relates to the crowded trades in the Mag Seven, and be looking outside of the Mag Seven for opportunities in the US and be looking aggressively in international opportunities." To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. This post was written by Naomi Buchanan.
