Sunday, April 01, 2007
World in Conga Line
All the world bourses are starting to move in tandem. A word from a Chinese mandarin sent the Shanghay bourse down, and the event progressed like a tsunami wave to the West and sank successive bourses and in 24 hs hit back Shanghay. The world financial ocean oscilates like a real ocean, it has become one liquid body. Opportunities to exploit local phenomena are decreasing, arbitrage has to be chased with ever more precise instruments. A qualitative change has taken place and I am uncertain about how it will affect me. I am convinced that Israeli stocks are deeply underappreciated, although that too is passing. Moody produced a report that emphasizes the strenght of Israeli economy and its imperturbability in face of permanent government unstability and crisis, periodic wars and geopolitical tension and unceasing terror. Intel is basing its survival strategy on its Haifa group, but the world has yet to realize that something different is going on here. I am going to continue investing in Israeli companies, even if I did not find yet proper vehicles to expose me to the internet nor financial houses. Well, now we have a week long holiday and I shall explore the enviroment.