Ukraine stock market

[adam99]

ukraine stock market is doing great last year.

https://tradingeconomics.com/ukraine/stock-market

Is there a fundamental reason for this or just volatility?

 

[zdreg]

currency depreciation?

 

[Nobert]

it's my guess, but one of the factors should be that, they managet to stabilize situation at the east part of the country ( mostly) . Also those peace agreements, even temporary. If the pro-russian separatists would be pushing front line, the scenario would be different. ( ? )

 

[Nobert]

currency depreciation?

Hmnn, how depreciation has a boost on stock market, like the money loose value, but stocks are doing better, how is that so, could you explain a little bit more?

Thanks.

Edit : is it, that the equities etc gets cheaper, so that attracts capital from other countries?

 

[zdreg]

money is just paper printed by government. stock of a company represents ownership in a business. if the currency loses value the company does not lose value, if the currency loses value the price of the company goes up in that currency so the value of the co. in real terms remains the same.

 

[Nobert]

money is just paper printed by government. stock of a company represents ownership in a business. if the currency loses value the company does not lose value, if the currency loses value the price of the company goes up in that currency so the value of the co. in real terms remains the same.

Simple & clear, thanks Zdreg.

 

[nooby_mcnoob]

money is just paper printed by government. stock of a company represents ownership in a business. if the currency loses value the company does not lose value, if the currency loses value the price of the company goes up in that currency so the value of the co. in real terms remains the same.

Yes but often the inflated price is discounted from real value or at least this was my impression from Dalios debt crisis book

 

[Nobert]

Yes but often the inflated price is discounted from real value or at least this was my impression from Dalios debt crisis book

got it for free as pdf from principles.com as well,

do you remember any examples of that in particular?

 

[zdreg]

Yes but often the inflated price is discounted from real value or at least this was my impression from Dalios debt crisis book

the stock maintains its value everything else being equal should have been included in my reply. of course, in life that is rarely the situation.

in any case real value is a nebulous number, dependent on many factors

 

[nooby_mcnoob]

got it for free as pdf from principles.com as well,

do you remember any examples of that in particular?

No way I'm reading a PDF on my desktop, I got it on Kindle. I think the Germany case study showed a chart with real value compared to inflated value side-by-side.