For many years the carry trade has been the mainstay of the RISK-ON profile. For some periods the ZERO INTEREST RATE POLICY of Japan forced money out of its system and in search of high-yield currencies in Australia, New Zealand, Brazil and other attractive venues. One of the best carry trades ever was LONG BRAZILIAN REAL/SHORT YEN as investors could fund the trade by borrowing YEN at very low rates and placing it in high yielding Brazilian bank accounts. As the Brazilian currency attained status as a commodity currency and, thus, a proxy for the China growth story, the BRAZILIAN REAL soared and the carry trade was a major win/win. When the U.S. FED went to an extreme low interest rate, the U.S. DOLLAR became a funding currency as the U.S. became a much less attractive place for global capital flows.