On Monday, Aug. 5, stock markets went into a full meltdown, triggered by the release of a disappointing July jobs report. That was followed by a decision by the Bank of Japan to raise its short-term policy rate target to 0.25% from the range of 0% to 0.1%. The bank also announced a sharp decline in the bonds it buys. Japan’s central bank decision resulted in the unwinding of carry trades. This is where investors borrow in low-interest-rate economies and invest in economies with high yields. Since then, the ...