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Article: Hot money follows dollar stocks.
- Article from:
- Investors Chronicle - magazine and web content
- Article date:
- October 27, 2008
CopyrightCOPYRIGHT 2008 FT Business. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Malar Velaigam & Risen Dennis
The shares that investors are buying into on weakness are those with dollar revenues or cash flow
Last week was a terrible one for most markets, but investors were still buying some shares, and a look at where the money went suggests a lot of them were looking for dollar cash flows, reacting to a steep appreciation in the US currency.
For instance, investors poured GBP225bn into banking giant HSBC after concerns about its emerging markets exposure prompted a fall in its share price. HSBC had earlier revealed it had taken in more deposits than it had made loans, making it far more resilient than many of its ...