Big Bucks, [edited] I was steered to a delightful newsletter by Teri and like it so much, I'm posting the latest below. There is no copyright notice, so I hope Fortune mag won't mind, especially since their subscription pitch is intact (free).
The letter proves you can be informative without being stuffy.
The writer offhandedly declares we're in a bear market.
I also encourage all to read "Why Russia's turmoil matters
The country's deepening crisis is but one piece of a
global slowdown."
moneydaily.com
GM
Street Life
Wednesday, August 26, 1998, 7:00 p.m.
Ruble Shudders to a Halt
By Andrew Serwer
Started off bad, got a little better in the middle of
the day, ended worse. Hey, what can I say? It's called
a Bear Market, people! Get used to it! Most of the day
we were checking out two major storms. Bonnie. And
Russia, which just continues to collapse. But I digress
(hey, I do that from time to time). The Dow fell 79, to
8523. NASDAQ got creamed--it fell 30, to 1768. Here's
what's up:
RUSSIA.... Okay people, listen up. This is BAD. REAL
BAD!! The Russians STOPPED exchange trading between the
dollar and the ruble today. No wonder. Listen, the
ruble has lost 30% in a week versus the dollar. So they
just shut the sucker down. Incredibly, the ruble lost
40% of its value versus the German Mark today.
TODAY!!!! Lines in the street in front of banks.
Horrible. This is going to be bad. S&P just downgraded
Deutsche Bank because of Russia. And CS First Boston is
getting killed by Russia! Russian equity markets?
Bloodbath. Over the past year the index has collapsed
from 525 to 75--an 80% loss!!!!!! It's small country
(economically), but still.
DRUCKENMILLER ON CNBC.... Nah, nah. Stanley can't move
the markets!! For those of you who don't know Stan,
he's "the smartest guy on Wall Street." Right. Runs the
Soros funds. What he says goes. So he gets on CNBC with
Ron Insana (who I like, who is smart, but who makes all
kissy face with Stan). Stan says the U.S. market is
undervalued, buy the U.S! He also thinks the Fed could
lower rates. And the market? It went down more. More
Druck stuff: He thinks Germany is okay, but doesn't
think there is "any hope for third world stock
markets." He's got to be short the Hong Kong dollar and
other Asian currencies. Thinks fixed currencies are
crazy. Keeps interest rates too high. Hey, Stan has
lost more than $2 billion in Russia. Yikes. Still, he's
up 19% this year. Says there's already been a change in
government there. Thinks Japan is a joke. Stan's smart
but he's a pain. You know why? Because he thinks he's
so damn important. He isn't. He just found that out
today. Go out and hit some golf balls, Stan. Have a
veal chop, my old college buddy. Go buy the alma mater
another science building.
Loose Change
Okay, it's official. There is only one stock left in
the bull market! Surprise, surprise. It's Dell. The
stock was up $4.50, to $128.50, a new high.... Hey it's
scary how far commodities are falling. I say the Fed
will lower interest rates, especially with the inverted
yield curve. I really think we have to watch out for
deflation!!!! Really. Central bankers think they are
God.... But I also like George Elliot, "Mill and the
Floss" that kind of stuff.... Hey IBM was up $2, to
$130. Well waddya know?... Nelman hears that the
Tellabs-Ciena deal will happen at .75 per Ciena share
or about $45 today.... Hey, have you checked out the
number of new lows versus new highs? I mean THAT is
ugly! (Not love in the '90s!!).... FORE!!!!! That stock
was down $5. Stupid name.... You know you're in a bear
market when the New York Times does stories on
"everyone is watching the Dow," including the UPS
delivery guy carries a hand held stock monitoring
gizmo!!!! Help us!!!!... I feel so sorry for those poor
bozos the TV networks send down into the middle of the
hurricanes. They've got these guys and gals down in
coastal Carolina who are getting the SIT blown out of
them saying stupid things like, "The wind is getting
stronger!!!!!!" Well, yes it is. Now get out of there
before you die, you dummy!!... So thank God, there are
glimmers that hoop is returning. SLAM (a horrible rag
that I used to write for) just came out with its
preseason NCAA poll. Ready:? 1. Duke; 2. Connecticut;
3. Michigan State; 4. Stanford; 5. MARYLAND; 6.
Kentucky; 7. Temple; 8. Washington; 9. Tennessee; 10.
Arizona; 11. Xavier; 12. North Carolina; 13. UCLA; 14.
Indiana; 15. Syracuse; 16. Rhode Island; 17. Arkansas;
18. Massachusetts; 19. Kansas; 20. Purdue; 21. Oklahoma
State; 22. Cincinnati; 23. Miami; 24. Texas; 25.
Georgia Tech. Get it?
Talk Back to Street Life....
Why let Serwer, Nelman, and Bethany have all the fun?!
Post your comments and questions about today's column
on our new boards, located at fortune.com.
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