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IT'S FOREIGN INVESTORS THAT DRIVE THE MARKET (2)

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Invisible_Hand
Occasional Contributor
Yesterday, foreign investors pulled a whole lot of money out of the market. The JSE fell 2%. Resources 3.4%. As in 1998, when there's a credit crunch, the first place they cash in is places like South Africa and Turkey (they pulled out of Turkey yesterday too) and then we sits like birds in the wilderness until they come back.
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23 REPLIES 23
Not applicable
who cares where the money is from or where it is going to (this doesn't mean I agree with the statement you make).....only relevance is for currency traders....money is money....not sure what the point of this post is...
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Invisible_Hand
Occasional Contributor
Well do let me know when you've decided if you agree or not. Also when you've got an answer to my question to you on my last post.
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Brazen
Super Contributor
Chartist it would be polite to answer Invisible Brain. Er. . . I mean HAND.
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Maddog
Regular Contributor
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Not applicable
Is that the one he uses when the hand gets hairy?
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Not applicable
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JohnnyCash
Super Contributor
IH what stats are you using to identify that yesterday's selling was done by foreigners?
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Not applicable
He must be still sitings in the wilderness!
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Invisible_Hand
Occasional Contributor
This article in today's Telegraph: http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/10/23/cncredit123.xml "Mr Redeker said yesterday's dollar spike was caused by US investors pulling money out of Turkey, South Africa, Hungary and other emerging markets. They had invested $300bn in bonds and stocks over the last year." (Redeker is currency chief at BNP Paribas.)
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Invisible_Hand
Occasional Contributor
I asked did you know when I first got in to the market after you had said people like me scramble in to the market after it is too late. I was wondering how you knew anything about my investment decisions to warrant that statement.
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Not applicable
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JohnnyCash
Super Contributor
But that is only heresay! Journalist may even have incorrectly attributed statement to the poor oke. Fact is you need to look at JSE own daily stats and then also in relation to averages over last while!
Comment is out of context as it was the answer to the Q of why the dollar is strengthening. The first foreign money in our market will come out of currencies, then bonds, then shares.
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Not applicable
'incorrectly attributed statement?'. Dude, the technical term is 'developing a story,' or better 'following the angle'.
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JohnnyCash
Super Contributor
Ja, Im not good at this diplo thingie... Wondering, u guys may be onto something with SPB's real name and who he actually is!!!! Let me just ask - What was that oke's name that were going to buy Goldfields not so long ago? Now SBK? mmm.....
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Invisible_Hand
Occasional Contributor
Well, if you think about it, most of our information is hearsay. It's what we have to go on, unless we are to check out every story put out by journalists in reputable newspapers. Even that would not help if Redeker himself got his facts wrong. I wonder if the JSE daily stats indicate how much money was pulled out by foreign investors - I suppose that too would be based on hearsay evidence as the JSE depends on reporting from others.
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Invisible_Hand
Occasional Contributor
Therefore stated in ignorance, as I thought.
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john_1
Super Contributor
Hey IH worry not about chartist.. he gets PMS about 17 days of every month, other than that he is a really nice guy, a bit boring but nice. As for your theory about selling.. According to my sources the JSE is now over 50% owned buy people living off shore, up from about 30% less than 2 years ago... now today there are talks of another off shore bank looking to buy STD bank.
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asylum
Super Contributor
Hey John where you get the info on SBK?
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john_1
Super Contributor
I know people, who know people, who make this stuff up.
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