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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?


To: DownSouth who wrote (21202)3/24/2000 12:18:00 AM
From: John Stichnoth  Read Replies (3) | Respond to of 54805
 
DS--I believe the assumption is that tighter margin requirements would decrease volatility and the related chance of a "speculative bubble".

It's only the onset of the new requirements that might cause disruption. For instance, if someone is operating on 40% margin, and the Fed changes the rule to 35%, he's immediately got to provide cover or get sold out.

After the initial shock, things should be more stable, as long as the initial shock didn't start a domino effect.

Best,
John



To: DownSouth who wrote (21202)3/24/2000 4:50:00 AM
From: chaz  Respond to of 54805
 
DS: I think that's a fair argument...

I had a conversation just yesterday in which it was said (not by me) that AG's real motive was to depress the Naz.
I find that a little hard to believe, actually very hard to believe...but in time, increased rates will slow down industrial buying across all sectors, including technology.
That certainly seemed to be the case in the early 80's, but I may not remember those days well because I was not in the market at the time.

Chaz