Howard, You are right. The consensus is calling for lower bond rates.
I didn't agree with Abelson, as I said it long before he did. Raising margin requirements is a basic weapon in the Fed's repertoire and the most appropriate when you have asset inflation, weak productivity and an unbalanced economy. However, I gave up on that about 18 months ago when AG said he would absolutely not do it, as it would hurt the quality of his job offers or the quantity of his customer list when he retires from the Fed. <G> The fact that he did not do it helped spawn the crunch we are now in. Sort of like if FDR had said he wouldn't use carriers in the Pacific during WWII. <G>
I like India and I like IFN. In many ways, India is different from other Asian countries. It has such a huge domestic economy that it is not as dependent upon foreign investment. Yet, the shares have come down with the rest of Asia. Unfortunately, it is a corrupt country and reform seems to have its work cut out for it. But I am always optimistic when stock prices are low.
I own puts on the IIX Internet Index. Just a one third position, but I'm ready to add any day now. I have been very lucky with this one so far this cycle. This is like the biotechs in 1992.
Speaking of which, my current favorites are Genzl, Gztc, Sang, Incy and Lgnd. Old favorites. But right now, they are so cheap, I think we are back to shooting fish in the barrel and an investment in HQH or HQL may be the smartest way to go. You get a load of discounted bios with the fund at a big discount.
MB
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