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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Ken W who wrote (28752)	6/23/2002 1:05:01 AM
From: Ken W	Respond to of 29382

A little tid bit about hedge funds: "Michel Nassif, head of the hedge fund advisory business at J.P. Morgan Private Bank in Geneva, said hedge fund allocations at many banks had nudged up to the 30 percent mark from 15 percent or lower because of the continuing market doldrums. "Many clients say, 'why not go higher?'," Nassif told Reuters. "Given weak returns on traditional investments, there is a lot of demand for hedge funds." Explosive growth in hedge funds in recent years has lifted total assets invested in these lightly-regulated investment vehicles, which can sell stocks short and use borrowed money to boost returns, to more than $600 billion." Ken

To: Ken W who wrote (28752)	6/23/2002 10:49:51 AM
From: Sergio H	Read Replies (3) \| Respond to of 29382

Ken, the dollar is hitting new lows. Earnings of US stocks are based on the US dollar, therefore all valuation methods indicate lower prices for US stocks, as the dollar declines. Things aren't going to change until the dollar stabilizes or regains strengh. The Bush team has not defended the dollar, allowing the markets to define price while the Fed, despite signs that the economy has improved hasn't changed its interest rate bias to back the dollar. Sooner or later the Fed will have to begin pushing interest rates up. Hopefully it won't be too late. The change in direction for interest rates is likely to instill confidence in our economy and our stock market and hopefully put Enronaitis behind us. If we're lucky enough to witness interest rate hikes without inflation, we could see a lasting rally. Hope you're enjoying your weekend. I am finding other diversions while waiting for the market to change. Several home improvement projects as well as self-improvement projects are in the works. Just finished re-doing my driveway. Pretty good except for a mogul on the last turn <ggg>. We put a sand trap behind it, temporarily. Also doing great on weight loss. Lost 30 pounds!!! Another 20 to go. Back to the market. My strategy won't change. I still like a sector approach first and then finding good small caps within hot sectors. This method has not been successful this year. It's not going to be successful in the current market climate. The current market climate is only a temporary condition. The only change I'm planning in my current porfolio is dropping gold. Gold has gone up in direct converse relationship to the dollar's decline. I like the chances for the dollar to regain some strengh better than the odds on the dollar continuing to decline. I'm opening up an account with Scottrade. I'll give it a shot and see if I like it. Will let you know. Sergio