Flows and ebbs. (flow of investments)

Economist (US), The, April, 1988

NOBODY knows exactly by how much international investment in equities grew during the long bull market. But Salomon Brothers, an American investment bank, reckons it has a good idea of how much that business shrank during and after last October's crash. The tables show Salomon's calculations of the net cross-border flows for equities (that is, for each market, gross purchases of equities by foreigners minus their gross sales) for the fourth quarter of 1987, and for the whole year.

At the time of the crash, brokers noted that investors keen to liquidate their share portfolios were keener to sell foreign equities than domestic ones. Few realised quite how big those sales were: a net $46.5 billion in the last three months of the year. Those same investors had...

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