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There is another possibility regarding the lack of success of foreign
investors in American securities - namely, that the knowledge of domestic
markets which is possessed by foreign investors is often time-delayed and
culturally decayed. Although some active traders and sophisticated
investors can, regardless of where they are located, trade and/or invest
with success any where in the world, non-professionals are generally
hampered by lack of sufficient access to market related news in the target
market and by being physically and culturally removed from that market.
Even the wealthiest can fall into this trap, as is evidenced by the forays
of the Japanese in the 1980's into the American markets and their subsequent
retreat with devastating losses in the 1990's.
The disconnect is no doubt compounded by the intercession of a broker who,
in the pursuit of commissions, may not recognize the limitations of his or
her ability in foreign markets.
All of which may result in the truth of Ralph Volpe's comment of buying high
and selling low.
FWIW
Regards,
Tony
----- Original Message -----
From: "Ralph Volpe" <rjv@xxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: September 18, 2001 9:10 PM
Subject: Re: [RT] DJIA & SPX Key Levels and Long Term Forecasts - NW
> There is something here that sounds a bit fishy. I don't know about the
European
> markets but the Japanese market is worse shape than the American markets.
Also,
> America's interests rates are still higher, which attracts funds from
around the
> world. If any money is being siphoned off, it's to other investment
selections,
> such as gold and gold stocks. Keep in mind that lowered interests rates
are a
> negative for those who invest in CDs or bonds, which at some point
neutralizes
> the fear of the market and becomes investment capital directed into the
> securities markets. SLAWEKP's story below may be a situation of "selling
the
> bottom" and then "buying the top" a few months later. It's hard to assess
world
> money flow and investment directions. For example, if many investors were
> withdrawing funds from American markets to reinvest in their local ones,
then
> why aren't those local markets going up? The truth is, anytime there's
been
> world uncertainty it was always best to invest in American securities as a
means
> of protecting assets. Am I missing something?
>
> --
> Ralph => E-mail => rjv@xxxxxxxxxx
>
>
>
> SLAWEKP@xxxxxxx wrote:
>
> > Just talk to my European Uncle that even against my advise he put money
into
> > America on advise of his European broker which he sold him same story;
new
> > technology, new era, people making killing in USA
> > your cash is trash. Now he uses words I cannot even translate in fear
of
> > being kick out of this group. He lost on promisees of csco's, JNPR's
> > & others. In addition to loses he lost 10% in currency exchange due to $
> > decline. He is selling everything in US & taking home what's left.
> > Now multiply by millions of foreigners that have same situations. They
vote
> > with their feet & money
> >
> > slawek
>
>
>
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