Reader OldVet notes:
In the financial Blog world of traders and investment managers, there is something known as a “contrarian signal.” That is, a sign that the tide is going to turn in some market. The dollar has been falling steadily for several months, and some 5% in the last month, against major currencies. But one of the most popular “contrarian” signals is that a cover story on the Dollar reaches the front page of the Economist , according to many. A second, slightly more frivolous signal, was that Gisele, the world’s top fashion model from Brazil , refuses to take Dollars for her jobs any more. Plus Jim Rogers, commodities lover and dollar pessimist, has been invited to talk on Bloomberg TV twice recently.
OldVet provides this link to a story in the Economist.
He goes on to note contrarian signals have to be taken with a grain of salt. So… has the dollar fallen too far too fast? Is it going to rise a bit at this point?
BTW… I wouldn’t consider Gisele’s move to be contrarian. I listened to Brazilian newscasts a lot growing up, and I’ve recently started listening to Brazilian news on the radio while making my breakfast in the morning. (Since I rarely eat dinner, breakfast is the one meal of the day that takes a bit of time to prepare, especially now that we’re in pomegranate season!!!) Anyway, as far back as I can remember, Brazilian newscasts have always, repeat, always mentioned the value of the dollar. Nowadays, they also mention the value of the Euro. I’m not saying Gisele is right, but Brazilians who pay attention to the news are far more aware of currency values than most Americans.