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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Jules V who wrote (37618)	10/25/1997 3:50:00 PM
From: Jim McMannis	Respond to of 186894

Sooner or later the peg has to go for the good of the Hong Kong market. Anyone investing in Hong Kongs market now won't sleep well in fear of waking up one morning and seeing the HK dollar un-pegged and dropping. Of course, since there is no real way of shorting the HK dollar the Hong Kong market has been the proxy vis a vis a no win situation. If rates rise in HK in order to defend the currency the stock market takes a hit, this has happened. If the HK is alloed to float and it devalues then your HK holdings are immediately devalued by the same amount. This is also being discounted. Unless the HK dollar is allowed to float there will always be the fear of just how much it would devalue if allowed to float. As you know, markets don't like uncertainty. As far as Intel selling into the region, the stronger the dollar the more expensive dollar denominated products become. Conversely, companies importing components from these S.E. asian countries with currencies dropping against the dollar are benefited at least in the short term by cheaper prices. We'll just have to wait and see how it settles out. Right now, that Texas FAB has the market more worried I think. Jim