World Stock Markets have gone parachuting, but the chute are all tangled in each other. Markets: We seem to have discovered another side to the interconnected global economy...
A fundamental piece of investing advice has always been to “diversify.” Well, fine. Except that it seems that all of the world’s markets are now more interconnected (or tangled up…) to the millisecond than the NYSE alone was, oh, say twenty years ago. One might hope to find an Apple or MS at startup, but otherwise we might as well buy a broad-based mutual fund, just hang on and DON’T SELL LOW.
A fundamental piece of investing advice has always been to “diversify.” Well, fine. Except that it seems that all of the world’s markets are now more interconnected (or tangled up…) to the millisecond than the NYSE alone was, oh, say twenty years ago. One might hope to find an Apple or MS at startup, but otherwise we might as well buy a broad-based mutual fund, just hang on and DON’T SELL LOW.