Not necessary, it largely depends how USD play out for the future, those (especailly European and Japanese) invested in US market in recent years, even though stock up 10%, it still can't offset the currency loss of USD which has depreciated more than 10% over the years.

So it depends on how USD situation also. One thing to remind, dropping more doesn't mean it is cheaper than those dropped less one. One needs to use fundamental valuation point to justify whether it is cheap or not.

FYI, HKD is pegged with USD so goes down together.

This post has been edited by cherroy: May 19 2008, 04:51 PM

It is not like reaching one date, then full stop, it is over. It never will be like that. The credit crisis will be over (for sure it won't last forever, as free market is self correcting mechanism) in a gradual form which there is not indicator to say it is over or not. As long as bank balance sheet improving and become healthy, and credit become loosen over the time, then credit crisis will gradual improve. While housing bubble burst, (house price dropping) become stablise and financial instituition deleveraging into a more comfort zone then with situation improve across the banking and especially investment banks, then it is positive factor for the crisis to be over.

The main problem of recent crisis is that nobody knows what is the card behind on each one. As with subprime crisis exploded, market knew there are some bad cards behind certain players (banks/investment banks), but don't know whom actually and how much, that's why the credit crisis persist until now (after 1 year already)