Goldman Backs Carry Trades Again—But the Risks That Blew Up in 2024 Haven't Vanished

Goldman Sachs is favoring yen-funded carry trades, betting the yen will weaken to 165 per dollar by mid-2026. The bank cites optimal conditions: low volatility across major currencies. But this echoes pre-2024 advice—before the same trade imploded in July-August 2024, spreading losses across currency markets and triggering equity selloffs. The structural vulnerabilities remain unresolved.