BIS Review 96/1998  0  -9(b)  Information  Some of the explanation for the reversals can be found in the paucity of information, among investors, about the emerging markets. For the most part, their knowledge was so superficial that it could be (and was) overwhelmed by the arrival of relatively small amounts of new information.
More importantly, investors without their own knowledge base simply followed the herd. In such a world, it is rational for any individual player to shift with the herd when new perceptions arrive. Whatever the fundamentals, when the herd is running, you run with it.