U.S. stocks getting repriced
"U.S. stocks are getting repriced versus foreign stocks," according to an investment manager quoted in The Wall Street Journal's "Ahead of the Tape" column (March 29, 2006).
What does that mean? U.S. stocks are not rising in price as rapidly as non U.S. stocks, in a reflection of the declining value of the dollar. Year-to-date, of the 23 countries in MSCI's world index, "only two--New Zealand and Australia--have performed worse than the U.S. in dollar terms," says the article.
On a related noted, a front page article on the same day proclaimed, "Finally, a Healthy Japan Offers Lift for the U.S., Asian Economies: New Prosperity in Tokyo Spurs Import Surge and Helps Foreign Financial Firms."
What does that mean? U.S. stocks are not rising in price as rapidly as non U.S. stocks, in a reflection of the declining value of the dollar. Year-to-date, of the 23 countries in MSCI's world index, "only two--New Zealand and Australia--have performed worse than the U.S. in dollar terms," says the article.
On a related noted, a front page article on the same day proclaimed, "Finally, a Healthy Japan Offers Lift for the U.S., Asian Economies: New Prosperity in Tokyo Spurs Import Surge and Helps Foreign Financial Firms."
Labels: investment
posted by Susan Weiner, CFA at 11:12 AM
0 Comments:
Post a Comment
<< Home