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Time zones really mess me up when considering the stock market..

The fact that right now the Nikkei is down but the FTSE is up can almost entirely be put down, it seems, to variations in timezone.. During trading yesterday (and I'm thinking in my timezone right now), everything shot down because of fears that the market was overvalued. This didn't hit the Nikkei so much yesterday, because it was already closed by the time most of this happened. So the Nikkei stays overvalued overnight.

Then, later on in the day (from America's point of view) there was a recovery of sorts because the market had swung too far. But the FTSE was closed, so FTSE shares were undervalued overnight. So when today's trading started, the FTSE was undervalued at say 90% of its true value, the Nikkei and Hang Seng were overvalued at say 110%, and the Dow is just sitting there chuckling to itself because it's probably correctly valued now, and is the cause of the whole thing in the first place.

So the FTSE is up by £20bn, the Nikkei is down 5.4%, the Hang Seng is down 3.3% (don't know the actual values), and all just because they're in different timezones.. I don't know how economists cope...


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