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Strategies & Market Trends : Bonds, Currencies, Commodities and Index Futures

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To: Chip McVickar who wrote (331)11/29/2000 6:36:36 PM
From: Raymond Duray  Read Replies (1) of 12410
 
Hi Chip,

Thanks for the interesting couple of articles on Asia/Japan. Very informative.

I found today's Caroline Baum column to be worth reading:
quote.bloomberg.com

<snip>
Tech Stocks Sinking, Tech Investment Shrinking.....
<body>
.....Outcomes Worsening

``The first scenario is that this is all about a valuation adjustment, and that once it's done, the tech wonderment continues,'' Barbera says. ``The decline in tech stocks says nothing about the underlying dynamic of the tech sector.''

That's the good news. The second and third scenarios differ only in the way they play themselves out.

``The second scenario is the tech wreck presages a wreck for tech activity,'' Barbera says. ``It leads to a sharp slowing in economy activity.''

Scenario three starts with a tech wreck and ends with a Fed rescue. The rescue is justified on the economic grounds, not as a life preserver for stock investors. There is nothing about recession in the Fed's mandate.


<continues>

YMMV, Ray :)
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