Nihil and other SI friends:
Today European major markets, Frankfurt, Zurig and London opened on postive notes, but there is a lot of nervous sentiments. However, the bottom is not falling! Everyone here is waiting on the US market.
This morning I spoke to a few people in several Swiss banks.
On Friday afternoon, our time, after closing of the Zurig market, the representatives of five largest Swiss Banks held a meeting to determine what direction is to be taken next and if we were at the end of the bull market, or this was another long over due correction.
This was the verdict:
The situation is ugly but not deserpate. The correction should have reached the bottom, unless we get a civil war in Russia!
Given the present crisis in Honk Kong, Japan, Russia, etc, can't expect the stock climb up again! It will take years for these economies to repair the damage, under strong leadership! This leadership is missing at the present time!
We are not yet in a Bear Market. The foundments are grouth in Europe and the United States are still strong.
The reaction to Russian political termoil was correct! In Russia, they will have to take a few steps backward to avoid complete collapse. They are used to State historic favoritism on behalf of economy. The state may cut the price of export of raw matterials in hope to sell more and make more hard currencies. This will distrupt the world market."
John, from what I gather, everybody is only guessing. No telling what to expect next. President Clinton can't provide the nation and the world andy leadership becasue he is weakend by Moinca Lewenski's sex scandle. Can you imagine, the only man that at the moment of crisis you need to provide guidance is powerless!
For one, I have lived through the bear maket in early 70's and the market crash in 87, and I have prospered. Last night I took my wife to dinner, and said to myself we will come out of this, sooner than later. We have to wait and not panick.
good luck to all,
Yaacov
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