[Investment Returns Surge to Decades-High as Arbitrage Trading Dominates Wall Street] According to a report by Jinse Finance, on July 22, faced with unbelievably low volatility across various asset classes, investors have flocked to arbitrage trading, making this enduring forex bet one of the brightest strategies in decades. This strategy, which involves borrowing low-yield currencies to invest in higher-yielding ones, has cemented its position as a winner for 2026, as the global economy has shown unexpected resilience despite the oil shock triggered by the Iran war. This environment has suppressed market volatility and emboldened traders to chase high yields in developing countries. One approach recently highlighted by strategists at banks like Citigroup involves borrowing euros to purchase a basket of currencies including the Brazilian real, Colombian peso, and Turkish lira. Data shows that as of last week, this strategy has gained approximately 18% year-to-date, marking the largest annual increase since 2005. Arbitrage has clearly emerged as the strongest strategy for forex traders this year, easily outperforming other popular methods such as momentum or value strategies. Research reports from Citigroup, Goldman Sachs, and JPMorgan have all emphasized this trend, while investors like Nuveen and Vontobel believe there is still room for further gains.