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Most investors are aware that Abenomics is having an effect on global equity markets, but the extent of the connection is truly remarkable. In statistical terms the yen and S&P 500 are moving in exact lock step, and the leveraged yen carry trade, a staple among hedge funds globally, goes a long way toward explaining it. The trade also provides a partial explanation for the extreme levels of U.S. market volatility since mid-May.