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Strategies & Market Trends : Classic TA Workplace

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To: Henry J Costanzo who wrote (144522)5/13/2007 1:28:19 PM
From: skinowski  Read Replies (2) of 209892
 
China permitting banks to buy foreign equities...Potentially big additional demand for US stocks...

Could be... It sounds to me that they want to 1) siphon off some money away from the overpriced domestic bubble - while hoping not to burst it too hard, and 2) Find a home for their surplus trade profits by placing them into foreign stocks (which are after all real assets) rather than exclusively into foreign bonds (which are paper)

It seems that this may amount to a sizable repatriation of dollars... not sure what it will do to the USD.
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