July 27, 2010

What is the relationship between one stock market and another foreign stock market?

By Planet Wealth

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 clarify the relationship? Or if this is right at all? Thanks a lot!

Topics: Uncategorized | 1 Comment »

One Response to “What is the relationship between one stock market and another foreign stock market?”

  1. pgreen Says:
    July 27th, 2010 at 8:08 pm

    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 like ;-)

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