Sunday Table Revelations

Sun, 2017/08/13 - 11:37am | Your editor
Printer-friendly version

I have just posted our Sunday tables with difficulty, because some foreign stock American Depositary Receipts traded on the pink sheets, OTC, on the gray market, do not show up in Schwab's account tables as they do at other brokerages. For consistency's sake I am using the US$ trades for these rather than posting results in sterling, Hong Kong dollars, Euros, or Norwegian kroner, but I may switch over to local currency non-ADR prices if I cannot get what I am used to from my new broker. I am still learning the process. I am not sure if Schwab does better than Fidelity in updating foreign quotes as a reader with hefty Hong Kong positions complained to me

I moved these to local exchanges mainly to avoid the huge commission if I trade them here, $44.95 for any trade of a share ending in F (except those in C$S which trade at US rates). I may have to move these exotics into my US account until I am ready to trade them to get current prices.

The main lesson of the past week is that war fears are not particularly dangerous for stocks in countries like South Korea or Japan--the expected target of North Korea which is being goaded by our president. They are down but so are almost all other shares in the US or anywhere else. The only exceptions are shares in some special situation, like one issued with exercisable rights to buy new shares. And gold of course, the bolt hole of choice when there is geopolitical uncertainty. I only wish that Pres. Trump would stop echoing his North Korean and Venezuelan opposite numbers, because either he will lead us to war, or more likely, he will lose credibility if he doesn't follow through.

Either outcome is bad for US shares but, in my admittedly biased opinion, less damaging for the global investing strategy which I preach.

More follows for paid subscribers:

Full content is available to subscribers only. Subscribe now.