Friday, May 22, 2009
It's hard to believe that Warren Buffett's "Buy American" op-ed was more than seven months ago. How time flies!!
Macro Man wonders, however, if some foreign (Chinese, perhaps?) Buffett equivalent hasn't written a contra piece, entitled "Sell American. I am." For how else to explain yesterday's price action, in which the dollar, US equities, and US fixed income all received a good thrashing?
Well, one way to explain it would actually be noise; after all, yesterday barely registers on the scale of the chart above. Moreover, in thin holiday traffic (Europe on hols yesterday; the US and UK, on Monday), it doesn't take much to push things.
Still, markets are never afraid to let the facts get in the way of a good story, so it's worth keeping an eye on the "Sell American" theme...possibly coming to a Bloomberg screen near you!