Almost two months ago I featured a chart that suggested our equities market looked cheap to foreigners. Today we get a couple of news stories that confirm this view:
Japanese Banks Go on a Shopping Spree
Canada’s Largest Drilling Company to Buy a U.S. Rival
And the NY Times recently ran a piece about foreigners flying into Manhattan for weekend shopping sprees:
They’ll Take Manhattan, in Cash
So international businesses are finding value in our assets and foreign consumers are celebrating the weak dollar by buying up Manhattan. And I expect it won’t be long before this bargain hunting tranfers to our relatively cheap (in terms of currency) stock market.
(Click for audio)
Sources:
Chart of the Day: S&P 500 in Euros
Jesse Felder
My Back Pages
July 2, 2008
Japanese Banks Go on a Shopping Spree
Leslie P. Norton
Barron’s
August 25, 2008
Canada’s Largest Drilling Company to Buy a U.S. Rival
Reuters
Augst 25, 2008
They’ll Take Manhattan, in Cash
Alex Williams
The New York Times
August 3, 2008