What is the relationship between one stock market and another foreign stock market?

February 5, 2009 · Filed Under Investing 

5p4rk asked:


I’m an Indonesian and I am told that my country stock market going down has something to do with US’s stock market going down. Can anyone please help me explain the relationship? Or if this is true at all? Thanks a lot!

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Comments

One Response to “What is the relationship between one stock market and another foreign stock market?”

  1. Create a video blog...instantly. on February 8th, 2009 1:09 pm

    Website content

    This is called arbitrage, when stocks get cheaper
    in one market, investors will not buy in another
    unless the price is driven down also.
    There are of course other reasons, the main one
    is that economies are interrelated around the world
    and when an economy is sneezing, the neighbor
    one is in danger of catching a cold.
    Stock markets rise and fall in “sympathy” with
    each other, even stock investors can show love ;-)

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