Strictly: Drilling and oil-field services Message Board

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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: Alias Shrugged who wrote (20071)	4/22/1998 10:14:00 PM
From: Chuzzlewit	of 95453

Mike, It is tough to come up with a [bearish market] scenario that doesn't hit our stocks also. This is a key observation. The fact is that all of the stocks in this sector have positive betas. If I shared LT's views I would be either out of the market or holding some nice puts for insurance. Frankly, I see no reason for the market to tank. Interest rates look to be stable, non-farm payrolls declined, oil prices firmed, but not enough to be inflationary. So it doesn't look like equity markets are poised for a big fall. Of course, a sudden unexpected economic jolt could change that in a hurry, but barring the unforeseen, I just don't see it happening. I do, however, see the strong possibility of a rotation of funds out of the big caps into the mid to smaller caps. That may give the appearance of a collapse, but in fact it would simply mean a movement from sector to sector, not into cash. TTFN, CTC

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