…the Dubai Financial Market Index shed 81.18 points or 11.7 percent to
close at 611.86 points. It has so far dropped 40 percent from its
end-2005 close and down 57 percent from its all-time high.
Is Ski Dubai like buying corporate naming rights to a sports arena, namely a sign of trouble? Here is the link, check out the blog, and thanks to jck for the pointer. Try this post on whether psychologists are better market speculators than economists.
I would be extremely hesitant about investing in Dubai if for no other reason than that it’s too close to Saudi Arabia, which is too unstable. A collapse of the Saudi government would be bad news worldwide, but most of all for its tiny neighbors.
Interesting blog… any idea who writes it?
Personally, I believe moving into markets after they’ve had huge sell-offs is an inherently great idea. ’29 after the crash, ’87 as well, ’82 when everyone said U.S. stocks were dead, ’02 Nasdaq, etc. Haven’t researched it too much but thought I heard that the liquidity of this market is such that big institutional players can’t really get in.
Spencer, Thank you for the numbers. Your point holds generally.
We can now pick out certain historic “lows” because we now know that is precisely where the market turned around and begand a long, upward climb. But there was no way to know at the time: that’s why the price was so low at that moment. (that, and a shortage of liquidity).
Alex’s “strategy” is no such thing until he can distinguish a rapid price drop from a rapid price the will turn around — as it happens.
The Dubai market is up 7.5% in the first two hours of trading today.
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