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From: | jesse <johne777@hotmail.com> |
Date: | Mon, 18 Sep 2000 19:54:49 +1200 |
Hi Brian I know your not a big Nasdaq fan but youve generalized things a bit...eg...'That market is driven by price and I suggest that the majority of private investors/traders wouldn't have a clue as to P/E or any other indicators. If the price is going up that is a good share to have -nothing else.' I'd say Nas traders know more about their stocks (including p/e) than NZSE investors do about their NZ stocks, simply because more info is available and Nas traders usually have a core of stocks that they move in and out of frequently, and know them in detail. Now if you said Nas traders dont put much weight on P/E when selecting stocks, thats closer to the truth, but they still know it. I know quite well if I want to trade EBAY that its P/E is over 1000, or CSCO about 140, thats why I trade it and dont hold it. And not just trading on momentum, could be a host of reasons, earnings, split, news, futures, charts etc. As far as other indicators, come on Brian, you know that most traders use technical analysis over fundamentals, so a Nasdaq trader will be more familiar with a stocks indicators than a long term holder. Brokers pumping stocks...happens everywhere.... sure, probably moreso in US, more brokers, more cowboys. Nasdaq coming back....theres actually two questions, when and by how much? Agree you cant compare our market with US, but, one can still impact on the other and, IMHO does. Just look at the sell off in April, did we brush it off or fall with it? The fewer offshore investors we have in our market though, the less effect they have on NZ market. Most investors Ive chatted with, with offshore stocks, say that when things get tough, they reign in their offshore assets first. I see Nasdaq has been off last 2 weeks and maybe just a coincidence that NZSE is drifting back to 2000. Trouble is, when foreigners sell and dont come back in, our market struggles to regain losses. Think thats holding back NZSE for sure, we need more offshore $, like it or not. Speculators or traders, provide liquidity. Same in any other market, currency, bonds, whatever. Take away the traders and you have a predictable, slow moving market. Unpredictable markets help attract additional traders, more liquidity and so on. Its that same unpredictable, uncertain element driving Nasdaq prices. When you get a big swing in opinions on future earnings, your going to get variances in values, expectations etc. Its the perfect recipe for a volatile market. Every now and then some analyst will say stocks are overvalued and things cool off...then its oversold so it rallies and so on. You should dip your toe in the Nasdaq waters Brian, you'd love it, frayed nerves, knotted stomach, etc etc. HaHa. 10% of your portfolio in US growth stocks would compliment the more divi style local stocks nicely. jesse ---------------------------------------------------------------------------- http://www.sharechat.co.nz/ New Zealand's home for market investors http://www.netbroker.co.nz/ Trade on Credit, Low Brokerage. Join now. ---------------------------------------------------------------------------- To remove yourself from this list, please use the form at http://www.sharechat.co.nz/forum.shtml.
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