Patrick,
First, thank you for your timely reply on the option pricing formula. I really think that I need to get a book to better understand the components of the formula. Merely having it is not enough, I need to understand why.
On repatriation. Regardless of whether or not the Japanese get there banking system back in order or their economy turned around, the current returns offered by Japanese investments simply do not compare, even to US returns at 5.6%. The turn around, if there is one coming, I think would help to boost the share prices of those US companies that have been hammered by the Asian problems.
We all know that there are a number of reasons to take this market lower, but there is just way too much money plowing into it. I for one am concerned about the large increase in the number of earnings warnings coming out and the number of firms that are missing their numbers. There is rampant speculation in the internet companies, wages are rising and it seems that all possible good news must be priced into the market right now. But, none of that matters when you've got baby boomers catching up, and generation Next that wants to retire at age 55. There was a study that found nearly 3/4 of 18 to 34 year olds are saving for retirement and that they have already saved around $50K. I think that the current generation is deeper than previous generations. Less concerned with materialistic possessions.
Wayde. |
