Currently foreign investors own around 41% of ASX companies. The total value of the ASX was about $1 trillion for memory.
If 20 percent of foreign investment exit the ASX that would be around 8% of the ASX or $80 billion.
You wont have to wait for another .75% interest rate drop to see the Australia dollar fall to .70usd
Technically we could see the Australia dollar fall below .60usd short term. That 8% exit from Australia equities could result in a tidal wave sell off.
It would be a fantastic opportunity for super funds to make a killing by picking up stock. The overall effect on the asx would be small.
