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Technology Stocks : Softbank Group Corp
SFTBY 13.19-3.9%Jan 23 9:30 AM EST

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To: badon518 who wrote (3692)2/5/2000 12:18:00 PM
From: Edwin S. Fujinaka  Read Replies (2) of 6020
 
I tend to agree that Japanese retail investors will be more conservative than American investors. Remember that many were burned by their investing experience and the pain has lasted for a pretty long time. This is quite different than a crash such as occurred in the US in October of 1987. The market recovered pretty quickly so there wasn't this lingering pain.

The minimal return on postal savings (less than 1% for many) and near zero for others will be impossible to maintain and this money should come into the equities market. Mutual funds bearing highly respected names may be the most popular investment vehicle. I think these funds are already investing in Softbank and will proliferate. As their numbers increase, the professionals managing the funds will focus on the premier stocks to be core holdings in their portfolios. Softbank will have to part of every agressive fund manager's core portfolio. The super agressive fund managers will also be buying into the Softbank spinoff ipos, thus boosting Softbank's portfolio of held stock. We are going to see a circle (which I won't characterize as vicious <G>) that will bootstrap Softbank upward into the near term future. I can see this extending into the future for an extended time beyond just the year 2000. The "little guy" retail investor may have a hard time buying into Softbank directly at these price levels. How many of us here would have bought in initially if it was going to take $133,000 to open?
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