Articles such as this on the front page of the WSJ will be giving foreign investors cause for concern. The thing with a black swan event is that you cannot possibly know when or what is coming but of course there is always the possibility. That said, they do tend to happen only once in a generation.
Investment capital from the stagnant economies of the US and Europe has been flowing into Asia in ever increasing size. What flows in can flow out just as quickly and the exit door always seems to be a bit narrower than the entry door. Perhaps today’s rally in the USD might be the first sign that some nervous money has decided to go home, for a visit at least.
