Fund manager Paul Macrae Montgomery makes an entertaining connection in this weekend’s Barron’s. He points out that the dollar hit a bottom against the Euro right when the Economist magazine’s February 7-13 issue had a dollar-bearish cover article titled “Let the Dollar Drop”. Don’t you hate when that happens?
Interestingly, Montgomery is rightly famed for having come up with another famous (in financial circles) magazine-based contrarian indicator. He is fond of pointing out that a reversal of fortune is due any time a weekly magazine devotes a cover story to a financial matter.