Another Signal of Dollar Bottom
Wads of dollar bills are usually as much a part of rap videos as fast cars, diamond-encrusted jewellery and scantily-clad models.But in an apparent nod to the low value of the dollar, rapper Jay-Z's new video Blue Magic features another currency.
He is seen cruising the streets of New York in a Bentley (made by Germany's Volkswagen) with a briefcase full of 500 euro notes.
It follows reports that the supermodel Gisele Bündchen also favours euros.
The catwalk star's twin sister and manager Patricia told Bloomberg in September that: "Contracts starting now are more attractive in euros because we don't know what will happen to the dollar."
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8 comments:
Those commie bastards should be barred from entering this country. Wait until the Europeans have 20% unemployment and the Euro falls flat on its face.
What goes around comes around.
Do these contrarian sentiment signals work in reverse, too? i.e. if a rapper or foreign model loves the dollar and prefers to be paid in dollars, that means it's a top signal? If not, why exactly should this particular change in behavior and preference signify a reversion to the previous state?
When was the last time you had a model on front page of mainline newspaper dissing dollar or when was the last time BBC front page highlighted story was some rapper preferring Euro to dollar. The crowd is always wrong at the turn.
When was the last time the dollar was so weak against the euro? Heck, *I'd* rather be paid in euros than dollars the past few months.
Is it still a contrarian signal if countries begin to prefer the euro over the dollar?
It's a question I always have when considering contrarian signals. Why is the default state one where the dollar is king? Why was it not a contrarian signal when everyone is big on the dollar but it is a signal when everyone is big on the euro? If there is a good reason, I'd love to know honestly. It's difficult to decipher a true contrarian signal from me just being naive or suspicious or hopeful or just mistaken.
When everyone was dizzy over Euro and it debuted to rave reviews, it spent next couple of years going straight down. So it works both ways.
qt - the key is deciphering who is the majority at risk, and whether there are any "greater fools" left to drive the trend any longer in the current direction. The market moves to take the capital from the majority at risk. Are Giselle and Jay-Z more likely to be among the last fools to join this trend, or do they have some deeper understanding of greater things to come?
Personally, i dont care which currecy is #1 or whatever topping signal, if you follow the trend, the money is being made in Euro appreciation, not in the 'mighty dollar' and has appreciated 60% against the dollar, so when the Fed finish printing dollars and i see the trend reverse, while then, the euro has the upper hand
kind of funny, people say follow the trend,but i guess it dont apply to the dollar, i guess double standard
please let me know when the trend reverse so i can transfer my money market account to dollars from euros to ride the new trend and make money
Charts talk
http://stockcharts.com/charts/gallery.html?$USD
i know someone is going to reply emotions and feelings in traders and investors blah blah blah....
my emotions and feelings is in making money, nothing less, nothing more
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