“When a herd ‘thinks,’ the result is not reason but an emotional interpersonal superorganic dynamic that must be the sourse of waves. A person’s patterned psyhological dynamics asthey relate to the social environment produce an unconsious impulse to herd, which in compination with like minds produces global patterns of interactive dynamics in a shared social setting.”
Robert Prechter, The Wave Principle of Human Social Behavior
Three Reasons I am Still Short the New Zealand Dollar
I recently shared some reasons why I thought the New Zealand dollar represented a good longer term short position. Since then, Kiwi (as the New Zealand dollar is affectionately known) has rallied a bit. My longer term bet here is pretty simple. It’s based on three rationales which are of course are interlinked:
1. China slowing on financial exposure
2. Export dependence & current account
3. NZ real estate
….read the whole Currency Currents 19 February 2014
