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Technology Stocks : Creative Labs (CREAF)
CREAF 0.4480.0%Dec 18 4:00 PM EST

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To: Dennis G. who wrote (4776)10/23/1997 11:18:00 AM
From: Will Cunningham  Read Replies (1) of 13925
 
There is an unsettled situation that has been unraveling in Asia for the past several months and I don't think that the US is immune from the Asian quakes. There is reason for concern over Hong Kong and China. Look at these two merged countries as a company. HK was bought out from GBR by China Corp. whose management team is somewhat suspicious to the world investment community. How many American and European countries have huge business investments and joint ventures in Thailand, Malaysia, Japan, HongKong/China? Perhaps too much at this point. Any company that has tried a currency hedging strategy with Asian currencies may face some losses--Seagate Tech to name one. Then there is the loss of wealth from market crashes which puts a damper on consumer demand for products of all sorts. Interest rates are going up in the region. Growth will be curtailed and recession (brief or long) could follow. This doesn't make for a good invesment back-drop, but my point is that American companies will be affected. To what extent is the question I think.
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