On foreign asset ownership."Foreign investors already own significant shares of some asset classes. They have $2,800 billion of direct investment in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. as well as large holdings of liquid securities. They own 43.9 percent of the Treasury debt market ($2,600 billion), 33.6 percent of the corporate debt market ($2,070 billion), 17 percent of the equity market ($2,600 billion), and 17.7 percent of the market for agency debt ($1,130 billion). These ratios mean that there is $30,000 billion of liquid securities still available for foreign investors to purchase." "The ratio of foreign ownership of the U.S. equity market is well below other industrial countries. Foreign investors own 42 percent of the British equity market and nearly 30 percent of the Japanese Japanese (jăp'ənēz`), language of uncertain origin that is spoken by more than 125 million people, most of whom live in Japan. There are also many speakers of Japanese in the Ryukyu Islands, Korea, Taiwan, parts of the United States, and equity market. They own 40-50 percent of many equity markets in developing countries." --David Hale on dollar volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the , Financial Times, April 20 |
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