mlk_man
03-28-2006, 07:46 AM
Careful with those Emerging Market funds.
M_M
“The Persian Gulf's highflying stock markets, suffering their first serious correction after years of gains, are raising concerns that a speculative bubble may burst and hurt emerging markets more broadly.
Fueled by cash from high oil prices, stock markets in Dubai, Kuwait, Abu Dhabi and elsewhere in the Gulf have tripled or more in value in the past three years. But in recent weeks, these stocks have suffered double-digit losses, with Saudi Arabia, the region's biggest stock market, shedding about a third of its value since late February.
Stock investing has been taken up as a hobby in an unprecedented number of households in the Gulf, where economies are booming from rising oil revenue.
An initial public offering of stock from Saudi Arabia's Yanbu National Petrochemicals Co. reportedly received orders from 40% of the kingdom's adult population. Many investors have borrowed money to bet heavily on highflying stocks.”
-The Wall Street Journal
Here is a chart of Dubai's stock market:
http://www.dailywealth.com/images/charts/2006/mar/20060328-chart_b_LG.gif
M_M
“The Persian Gulf's highflying stock markets, suffering their first serious correction after years of gains, are raising concerns that a speculative bubble may burst and hurt emerging markets more broadly.
Fueled by cash from high oil prices, stock markets in Dubai, Kuwait, Abu Dhabi and elsewhere in the Gulf have tripled or more in value in the past three years. But in recent weeks, these stocks have suffered double-digit losses, with Saudi Arabia, the region's biggest stock market, shedding about a third of its value since late February.
Stock investing has been taken up as a hobby in an unprecedented number of households in the Gulf, where economies are booming from rising oil revenue.
An initial public offering of stock from Saudi Arabia's Yanbu National Petrochemicals Co. reportedly received orders from 40% of the kingdom's adult population. Many investors have borrowed money to bet heavily on highflying stocks.”
-The Wall Street Journal
Here is a chart of Dubai's stock market:
http://www.dailywealth.com/images/charts/2006/mar/20060328-chart_b_LG.gif