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The Big Bang

Even if you don't actually own stock in foreign companies, their performance can provide

great insight into the future performance of the American markets. The day of the

Big Bang

marked the beginning of a global market. As the increased globalization of trades continues,

the effects of a day's trading around the world will continue to directly affect the performance

of other international markets. A recent example was the collapse of many Asian markets, an

event that dealt a fierce blow to the stability of the American markets. International investors

who were awake during the open hours of Asian trading were aware of the impending

damage hours before the American exchanges even opened. In this particular example, I'm

proud to say that the American markets were strong enough to withstand the blow, and the

damage was quickly repaired.

Plain English

The Big Bang was a red-letter day in trading history. On October 27, 1986, the

London Stock Exchange dropped its restrictions on allowing foreign investors to

participate in their markets. Symbolically, this day represents the unification of

markets around the world into one global marketplace.