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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: gao seng who wrote (268302)	6/29/2002 1:33:38 PM
From: Arthur Radley	Read Replies (2) \| Respond to of 769670

Stocks close out brutal quarter Worst decline in over 30 years for S&P 500 By Julie Rannazzisi, CBS.MarketWatch.com Last Update: 7:57 PM ET June 28, 2002 NEW YORK (CBS.MW) - The end of the second quarter closed out a devastating first half of the year for investors, with more than $1.4 trillion in wealth wiped out and the S&P 500 turning in its worst performance in more than three decades. The S&P's percentage losses for both the second quarter and first six months of 2002 were the steepest since 1970. It wasn't quite as bad for the Dow: the blue chip barometer's percentage loss in the first-half -- 7.8 percent -- was the shabbiest since 2000. The Dow closed out the second-quarter down 11.2 percent, the Nasdaq off 20.7 percent and the S&P 500 13.8 percent. On the week, the Dow fell 0.1 percent -- its sixth straight weekly loss -- while the Nasdaq rose 1.6 percent. Using the Wilshire 5000 Index as the broadest gauge for the stock market, about $1.4 trillion in market value was wiped from stocks in the first half of the year as a falling dollar and a rash of massive accounting scandals shook investor confidence to its foundation. Now the trillion-dollar question: what will happen in the second half? Dollar is key The dollar, which is knocking on the parity door against the euro, could be one of the keys in the second half. Its declines have raised red flags on Wall Street because of its implications for foreign investments in the U.S. "Foreigners have been toasted by their M&A and equity purchases over the last several years. The mark-to-market losses for foreigners are monumental," said research and money management firm Bridgewater Associates. Bridgewater believes foreigners will shy away from U.S. assets for a long time, as they are still "massively overweight" in U.S. securities. In the meantime, the U.S. needs to finance a ballooning current account deficit. "This very combustible mix will likely lead to a much more significant decline in the dollar than most have contemplated," Bridgewater said." Gao, You are so smart, so why don't you tell the investors that lost this 1.4 TRILLION that all is well and they shouldn't worry about the dollar and foreign investments in this country. I'm sure they will take great comfort from your knowledge on the subject. And don't forget to tell Shrub he is doing a great job. Remind him about when his Father ran for re-election and the phrase that people used to tell him about the real reason that people vote..."It's the Economy, Stupid!)