Navigating the Seppeku Panic of 2024

Over the weekend, I wrote that risk appetite is at the mercy of the carry trade (see The carry trade as risk driver). I did not expect that the Yen would continue to skid badly and the Nikkei would crater by -12.4%, which is its worse one-day decline since the Crash of 1987. While correlation isn't causation, and the price scales are different, the Nikkei has shown a close correlation to the NASDAQ 100 in the last year.
 
The carnage in Japan was so bad that it prompted some people in my social media feed to distastefully quip about seppeku, or Japanese ritual suicide. While it's impossible to know in real-time when the panic ends, here are some clues on how to navigate the Seppeku Panic of 2024.
The full post can be found here.