Rise? No?
July 19th 2006 16:54
Sometimes it is just puzzling to understand the behaviour of the stock market. After a week of raging Mid East conflict between Lebanon and Israel, the US market had absorbed the effect and dissipated it with a reversal from the negatives to the upside. Judging from this, the Aussie stock market would likely to follow suit, based on casual observation that the Aussie and US markets being highly correlated.
The upside in the Aussie market was, however, reversed before closing with massive sellings that puzzled analysts who saw no basis for it. The only reason is to profit from the highs and open more opportunities for more bargain hunting. Perhaps, behavioral finance could shed more light on this. Is it overreaction or underreaction? or some other anomaly? Maybe some expert could give some reasoning on this event.
Private equity has been given coverage for the past few days after an Asian private equity group, Affinity, began a hostile takeover of an apparel company, the Colorado Group. The spotlight on private equity could possibly suggest that Australia could see more development in this field, which is lagging behind other major economies like US and UK, therefore boosting the capital markets here. Good news for prospective finance graduates? Certainly hope so.
The upside in the Aussie market was, however, reversed before closing with massive sellings that puzzled analysts who saw no basis for it. The only reason is to profit from the highs and open more opportunities for more bargain hunting. Perhaps, behavioral finance could shed more light on this. Is it overreaction or underreaction? or some other anomaly? Maybe some expert could give some reasoning on this event.
Private equity has been given coverage for the past few days after an Asian private equity group, Affinity, began a hostile takeover of an apparel company, the Colorado Group. The spotlight on private equity could possibly suggest that Australia could see more development in this field, which is lagging behind other major economies like US and UK, therefore boosting the capital markets here. Good news for prospective finance graduates? Certainly hope so.
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