Gottfried, I saw Jim Crame on the nightime Charley Rose show a few nights ago. He was saying that he did not like the semi's but now like the banking stocks and I believe real estate. He was stressing that HK would not have the resources to purchase equipment for the semi's. However, when I looked at the DW Banking, Savings and Loan, Insurance, Finance sectors at highs on 10/29/97 I see these sector dropping, respectively, Banking 94.40% to 76.40, Savings and Loan 92.60 to 79.80, Insurance 84.50 to 63.90, and Finance 68.10% to 53.60% on 10/8/97. Real Estate has not reversed down but has dropped from 84.00 to 81.70%.
Semi's have dropped to 20.80%, computers to 33.10, and software to 31.80%. Using the bell shape curve and the tendency to move to the mean whether you are up or down which sectors would you rather buy the
$$$$$$$sensitivity stocks as banking, etc. or the computer/semi's/software stocks? Statistically, it is quite clear to me! But, I am sure some brokers who are heavy in the $$$$$$$ would argue with me.
Just my opinion
Paul V.
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