Posts with keyword globalization→
Japan and Middle East pose interesting contrasts to the investors. Yesterday I mused on the recent string of extraordinary events, one natural and the other man-made, that are shaking up these two regions, and causing ripple effects on US market.
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World events continue to rattle US market
Not long ago, national economies were more or less isolated from one another, and major shake-ups in one country – whether geopolitical (civil unrest, military coup, invasion) or natural (earthquake, tsunami) – rarely affected the economy of another.
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Rich gets richer, poor gets poorer
A recent Wall Street Journal report shows that the top 1% of the wealthiest people in America collared 21.2% of the entire nation’s income in 2005, a sharp rise from 19% the year before (also above the previous high of 20.8% in 2000). By contrast, the bottom 50% of the earners managed only 12.8% of all income, a drop from 13.4% in 2004 (and from 13% in 2000).
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Investing abroad in turbulent times
US stock market has just closed for the day with all major indexes again taking big dives: Dow Index is down by 387 points (a single-day 2.9% drop, 2nd worst of this year), S&P 500 down 44 points (3% drop), and NASDAQ down 57 points (2.2%). In the rest of the world, London’s FTSE Index was down 1.9%, Tokyo’s Nikkei up 0.8%, India’s SENSEX down 1.4%, and Australia’s ASX up 1.1%. These are the times when many investors begin to ask if they should jack up their stock holding in foreign markets. After all, the domestic and foreign markets rarely move in lockstep, and having a chunk of my asset allocated to foreign stocks should minimize any impact of a major domestic slump.
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