Thread,
Interesting little clip out of the Hong Kong Standard related to liquidity. I'm sure most of this money goes either into US equities or treasuries. If it goes into treasuries, rates go down, making equities more attractive. Either way equities win.
Also, concerning the election problems in Japan, as the Japanese lose confidence in a near term recovery, then there may be a increase in Japanese capital flows to the US. I know it sounds perverse, and I know it can't go on forever, but liquidity appear to be what drives our bond and equities markets.
All IMHO,
MikeM(From Florida)
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Investors taking assets out of Hong Kong: Citibank
CITIBANK'S private banking unit sees its Hong Kong clients diversifying their respective asset portfolios out of Hong Kong as a result of the Asian economic crisis. ''Previously, Hong Kong clients preferred to invest heavily in Hong Kong stocks and property, but now they are diversifying more into US and European assets,'' said Norman Wong, vice-president of Citibank Private Bank.
Citibank Private Bank currently has about US$100 billion in assets under management of which about 20 per cent are from its Asian clients. ''The trend towards diversification towards US and European assets has become stronger as a result of the Asian economic crisis,'' Mr Cripps said.
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