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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: NOW who wrote (62451)	1/20/2007 8:49:28 PM
From: regli	Respond to of 116555

"what is up with that? folks moving their money overseas? worrying al queda or US takeover on deck?" I believe that there are several contributors. 72.14.253.104 "... The Saudi stock market is heading towards another record year. In 2005, the Tadawul All Share Index (TASI) closed at 12,281 points and market capitalization rose an extravagant 36 times in 2005 to $1103.6 billion, five times larger than the country’s nominal GDP. ..." The Saudi market was obviously due for a correction. I have no doubt that as a result, quite a bit of money left (foreign and domestic) and did not return. Increased tensions in the ME including Iraq and Iran only contribute to that. I believe that the falling market in Saudi Arabia also undermined the confidence of smaller Saudi investors and in turn negatively influenced the general mood in Saudi Arabia increasing domestic tensions and threatening stability. I don't think that there is any reason to worry about a U.S. invasion into Saudi Arabia at this time. Such an adventure would likely only happen if the house of Saud were to fall. These quotes from May give you a sense of the mood. Obviously the market has fallen much further. ft.com "... Saudi stocks have lost half their value, or about $400bn, since peaking in February, when frenzied speculation drove the market's value to the equivalent of more than 200 per cent of gross domestic product. In his latest effort to revive the market and appease an angry public, King Abdullah said the state would shoulder any losses from a new fund aimed at small investors with a maximum of SR500,000 ($133,000) to invest. ..."