Originally Posted by
xafalcon
The US election is certainly a market mover right now. But IMO the more significant medium term driver of the NZX is the potential for foreign investors to cash up their NZX holding. Foreign NZX holdings have increased from 25% to 50% over the past few years. This is huge. If a significant portion of this recent increase in foreign holding is liquidated, it could be a significant cause for market weakness. A big sharp drop if they all run for the door at once, or a prolonged downtrend if foreign holdings are sold on rallies. But if foreign investors continue to see value in the NZX and don't cash up their investments, the US election will quickly become an historical effect, just like the Brexit vote. And "normal programming will resume shortly"