<<Besides the rest of the world's problems, keep an eye on the Nikkei. The Nikkei last night closed at 14,413 -- breaking a key support level (14,500) established in 1985! Analysts warn bearishness could soar in Japan if drop continues.>>
Dennis, welcome back. My belief in the current condition is that
Japan's market will follow US'. Japan's market has been pushed to
the extreme and hence I don't expect it will have a loss larger than
US' market today. Well, US will take a lead to break this chained
reaction either tomorrow or next week. Mr. Soro's loss on Russia's
bond investment(loss about $2b) and his suggestion on Russia's currency
de-valuation a couple of weeks ago triggered Russia's currency chaos.
I don't think Russia's problem will impact too long or too big. IMF
has stepped in to help. Their psychological worry needs to be amended
to stabilize currency. Clinton's visit in the near future will boost
their confidence on economic. This country is #2 in nuclear war-heads
volume, therefore, from any angle, IMF, Europe, Japan and U.S. will
all forward to give them a lift. US only has 1% exported to Russia,
hence, there is little impact on US economic condition.
Phil |
