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To: Phillip C. Lee who wrote (12537)5/4/1998 12:45:00 AM
From: Moominoid  Respond to of 213177
 
The general rule for stock's daily trend is: when the US dollar was
firm and strong, the overall market went higher. The interest rate in
US will go lower and foreigners tend to buy more US currency and
stocks.

The overseas market share in Australia is trivial compared to Japn,
China/Taiwan/Hong Kong/Singapore, and Europe. The influence seems insignificant.


Yes I just haven't checked these other currencies. But the Australian dollar has been tracking the Yen fairly closely. This is a stronger correlation than between the other US shares I hold and US dollar deposits. So this is beyond the general market trend.

Here are the correlations for all my US stocks and you'll see what I mean:

AAPL -.64
GNK .22
MSFT -.30
CMB .24
UIS .00
KELYA .12
NSM .16

The only one behaving similarly is MSFT but the effect is weaker for it than for AAPL.

David



To: Phillip C. Lee who wrote (12537)5/4/1998 1:39:00 AM
From: Moominoid  Respond to of 213177
 
Phil

I've added an Excel chart of the correlation to my website:

cres.anu.edu.au

There are a couple of outliers at lower left (last Nov-Dec) but otherwise the relation is pretty nice.

David