One factor contributing to the contraction of global markets is the Bank of Japan's (BoJ) interest rate hike and its impact on a popular investment strategy, the carry trade. A carry trade is when an investor borrows a currency with a low interest rate (such as the Japanese yen) and then reinvests the borrowed currency in a currency with a higher interest rate (such as the US dollar). For many years, investors borrowed yen at low interest rates (e.g., around 0.4%) and used the borrowed y...