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18 sats \ 1 reply \ @SimpleStacker 25 Mar \ on: They Broke the Law—The Law of One Price! (FT, Robin Wigglesworth) econ
Wow! If it lasted for a few days or even weeks I might not be surprised, but it looks like the spread has been significant for over a year!
Could bank balance sheet shortages really explain it?
Maybe something about capital controls? I know Taiwan restricts its capital outflows pretty tightly. BTW, which one is which, red and blue?
The red line is TSMC stock in New York (the blue in Taiwan).
There was some mention in the piece, too, about how the gap could stem from passive flow from brokerage accounts/investment policies in the U.S., that limits investment in certain types of assets-
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