Jul
27
What is the relationship between one stock market and another foreign stock market?
Filed Under (Gold Chart) by stock
5p4rk asked:


I’m an Indonesian and I am told that my country stock market going down has something to do with US’s stock market going down. Can anyone please help me explain the relationship? Or if this is true at all? Thanks a lot!

TYREE
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Comments

pgreen on 31 July, 2008 at 3:21 am #

THEODORE

This is called arbitrage, when stocks get cheaper
in one market, investors will not buy in another
unless the price is driven down also.
There are of course other reasons, the main one
is that economies are interrelated around the world
and when an economy is sneezing, the neighbor
one is in danger of catching a cold.
Stock markets rise and fall in “sympathy” with
each other, even stock investors can show love ;-)


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