dominican access to global financial markets

wuarhat

I am a out of touch hippie.
Nov 13, 2006
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Assuming it was actually possible for a poor Dominican to scrape a couple of pesos together and not squander them right away, would he or she be able to invest them in anything other than Dominican government debt or local bank offerings.
 

pauleast

*** I love DR1 ***
Jan 29, 2012
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That is a good question. I don't see why a Dominican would not be able to place money into say a T,Rowe price type financial vehicle. However I am not certain.
 

bayaguanaman

New member
Oct 22, 2009
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Why would they want too ?. The global markets are crumbling at present, interest rates at record lows, the next 6 months will be revealing to the major economies as the true level of debt becomes knowledge and non serviceable. True some shares have done well, for example, RR.L (Rolls Royce on the London market), more than doubled in 2 years on the back of a strong order bookand downstream servicing agreements, but they are certainly the exception rather than the norm.
 

cobraboy

Pro-Bono Demolition Hobbyist
Jul 24, 2004
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Really, The S&P is at a historical high, where do you get your market data from?

SPDR S&P 500 ETF Chart - Yahoo! Finance
It's propped up by QE money, $85 billion a month. If bank bonds were such hot commodities, the Fed wouldn't have to buy them.

When that flow stops, the stock market goes very soft.

Fact is keeping the masses focused on their decent 401K's keeps the natives lest restless. That keeps eyes off eviscerated home equity.

Keep in mind that Fed borrowing is separate from the "deficit." If you want a clear picture of the US financial health, add the deficit to the QE bonds. The number is enormous.
 

wuarhat

I am a out of touch hippie.
Nov 13, 2006
1,378
89
48
Why would they want too ?. The global markets are crumbling at present, interest rates at record lows, the next 6 months will be revealing to the major economies as the true level of debt becomes knowledge and non serviceable. True some shares have done well, for example, RR.L (Rolls Royce on the London market), more than doubled in 2 years on the back of a strong order bookand downstream servicing agreements, but they are certainly the exception rather than the norm.

They would want to because the only safe and sure way to wealth is through wealth creation. Investing and reinvesting in companies whose book value goes up year after year, who increase their sales and pay their owners more year after year, etc. Granted it has been tricky to get to get a good price on these kinds of shares lately, but waiting for the opportunities has always been how the game has been played. I haven't seen the crumbling scenario you describe, but let's say it does come to pass. There are hundreds of companies that have plenty of cash or sales to cover their debt and have been giving their owners raises for years. Their shares would only become more of a bargain.
 

wuarhat

I am a out of touch hippie.
Nov 13, 2006
1,378
89
48
It's propped up by QE money, $85 billion a month. If bank bonds were such hot commodities, the Fed wouldn't have to buy them.

When that flow stops, the stock market goes very soft.

Fact is keeping the masses focused on their decent 401K's keeps the natives lest restless. That keeps eyes off eviscerated home equity.

Keep in mind that Fed borrowing is separate from the "deficit." If you want a clear picture of the US financial health, add the deficit to the QE bonds. The number is enormous.

For various reasons, that change from time to time, the economy has been grinding on for millennia. The current reason behind it has never had any effect on how well the money spends.
 
Jan 9, 2004
10,897
2,224
113
It's propped up by QE money, $85 billion a month. If bank bonds were such hot commodities, the Fed wouldn't have to buy them.

When that flow stops, the stock market goes very soft.

Fact is keeping the masses focused on their decent 401K's keeps the natives lest restless. That keeps eyes off eviscerated home equity.

Keep in mind that Fed borrowing is separate from the "deficit." If you want a clear picture of the US financial health, add the deficit to the QE bonds. The number is enormous.

All true.

However, I learned long ago that you trade the market you have, not the one you want or the one you think should be....and it has been a heck of a nice run for 2013.

To stay DR related, and to answer the OP's question, its citizens are not limited to the local financial markets.


Respectfully,
Playacaribe2
 

pauleast

*** I love DR1 ***
Jan 29, 2012
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A market crash creates buying opportunities. Bring on another crash. Unless you need the money tomorrow the market is the place to park your cash. The DOW is pushing 16000 thousand. I hope it takes a dive as I will put more in.
As for people on the island investing. If they would put a few pesos a month, as in dollar cost averaging, into a S&P 500 account like Tambo was suggesting they would be able to create a significant amount of coin. However I know it is difficult for them and it gets right back to the education thing.
 

wuarhat

I am a out of touch hippie.
Nov 13, 2006
1,378
89
48
All true.

However, I learned long ago that you trade the market you have, not the one you want or the one you think should be....and it has been a heck of a nice run for 2013.

To stay DR related, and to answer the OP's question, its citizens are not limited to the local financial markets.


Respectfully,
Playacaribe2

Thanks. Do you know if there are Dominican brokerages they can use or if they have to find a foreign on-line broker who will service small foreign accounts.
 

cobraboy

Pro-Bono Demolition Hobbyist
Jul 24, 2004
40,964
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All true.

However, I learned long ago that you trade the market you have, not the one you want or the one you think should be....and it has been a heck of a nice run for 2013.

To stay DR related, and to answer the OP's question, its citizens are not limited to the local financial markets.


Respectfully,
Playacaribe2
Then it's just gambling, and the way to prosper is to, in essence, count cards.

That's fine.

However, in the good old days before QE and gubmint manipulation of the housing market, the stock market was based on fundamentals of profit, added value, supply/demand and real wealth creation. The mortgage & real estate market were downstream reflections of those.

And while public companies benefit from the Fed pumping $85 billion a month in bank bonds (literally out of thin air and that nobody else wants) and it winds its way into the stock market, private companies have suffered very badly. Look at business & personal bankruptcies and the shrinking labor market.

They play in the same economy by different rules. One class is "preferred" :)cheeky:), the other class not so preferred.
 
Jan 9, 2004
10,897
2,224
113
Thanks. Do you know if there are Dominican brokerages they can use or if they have to find a foreign on-line broker who will service small foreign accounts.

While I know there are brokerages in the DR, I would opt for an on-line one. Preferably one that is US based and offers SIPC protection (insurance).

Respectfully,
Playacaribe2
 

wuarhat

I am a out of touch hippie.
Nov 13, 2006
1,378
89
48
While I know there are brokerages in the DR, I would opt for an on-line one. Preferably one that is US based and offers SIPC protection (insurance).

Respectfully,
Playacaribe2

OK thanks, that's what I was thinking also. As much as I love them, I wouldn't trust any of the people I know here to hold shares for me mush less the strangers. It's just a matter of finding an on-line broker that will accept a non-resident and non-citizen. My current one is not such a broker.
 

caribmike

Gold
Jul 9, 2009
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"...on-line broker that will accept a non-resident and non-citizen..."

Do they exist? I couldn't find one... :(
 

wuarhat

I am a out of touch hippie.
Nov 13, 2006
1,378
89
48
"...on-line broker that will accept a non-resident and non-citizen..."

Do they exist? I couldn't find one... :(

I don't know. I've had the same success as you, but I haven't gone that far through the application process.
 

greydread

Platinum
Jan 3, 2007
17,477
488
83
A market crash creates buying opportunities. Bring on another crash. Unless you need the money tomorrow the market is the place to park your cash. The DOW is pushing 16000 thousand. I hope it takes a dive as I will put more in.
As for people on the island investing. If they would put a few pesos a month, as in dollar cost averaging, into a S&P 500 account like Tambo was suggesting they would be able to create a significant amount of coin. However I know it is difficult for them and it gets right back to the education thing.

Instead of buying lotto tickets
 
Jan 9, 2004
10,897
2,224
113
"...on-line broker that will accept a non-resident and non-citizen..."

Do they exist? I couldn't find one... :(

Fidelity will not accept non-resident non-citizens.

However, TD Ameritrade and E-Trade will both accept foreign accounts from many countries....but not all. Check with them.


Respectfully,
Playacaribe2