<AMZN> <Y2K>
Y2K will be a mixed blessing for the US economy and stock market with perhaps slightly more weight on the positive side.
Keep in mind that the world economy is becoming more and more integrated. When the Asian economies tanked, what did they do with their cash? They put them in the US. Money moves from unstable areas to stable areas.
The US is one of the most prepared for Y2K. As 01/01/00 approaches, the Japanese, Hong Kong residents, Chinese, Taiwanese, Singaporan, Thais, many Europeans, Russians, etc. will start thinking, "Holy f*ck! Our government, utilities, and corporations have pissed away the past couple of years and are not ready for Y2K. We might be going to hell in a handbasket when 01/01/00 arrives." They will do some quick research and find out that the US is the most prepared of the three large economies (US, EC, Japan) and is the safest place to hold cash and stocks. Large amounts of capital may flow into the US.
So Y2K may be hellish for a lot of countries, but it may benefit the US economy and stock market. |
