World Markets

Discussion in 'Trading' started by ShoeshineBoy, Aug 16, 2006.

  1. I’ve got a trading methodology that seems to work on US stocks. But I want to “diversify” and apply this same methodology to a basket of foreign stocks. Backtesting shows that it should do better if anything.

    But here’s my question: I’ve always read that foreign stock markets tend to be quite correlated to the US stock market. So is this really going to do me any good? Or, with the fall of the US dollar and the rise in economic power of Asia and the recent growth in Europe, are we seeing a decoupling of this phenomenon? In other words, is there any reason to believe that other stock markets around the world, particularly in Asia, Europe, the Caribbean and Brazil, can do well even if the SnP is trending down?
  2. Boy, as we say here in the South (of Greece), I hoped the greater lights here on ET such as Steve46 would answer your question, but they have not deigned to do so. Perhaps it because, paradoxically, it is harder to answer a stupid question than to ask one. Therefore let use use my famous method to help you answer it yourself. This will take some time, but you WILL get a definitive answer you will believe and can act on. Trust me, I have been corrupting the morals of the world's youth for nigh on two millenia. My first somatic question: in which country do you reside?