Coincidentally, I just mentioned the Recency Effect on Friday morning:
Barron’s Bob O’Brien talks about how equity investors are falling back on the latest piece of economic research, rather than looking at the prevailing trends. O’Brien also looks at latest payroll numbers.
1/9/2009
In any great organization it is far, far safer to be wrong with the majority than to be right alone. —John Kenneth Galbraith
Asian currencies continue to sell off vs the $ on the heels of the news yesterday that South Korea said they will look into hot money inflows stemming from the $ carry trade and the Bank of Indonesia said they are looking into the foreign buying of bills. This follows the news a few weeks ago that Taiwan was limiting foreign deposit holdings and Brazil was taxing foreign inflow transactions. As I mentioned yesterday, we may have reached a short term pain threshold in terms of $ weakness and foreign countries are fighting back as they certainly won't wait for...
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