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Technology Stocks : Altaba Inc. (formerly Yahoo) -- Ignore unavailable to you. Want to Upgrade?

To: Jumper who wrote (2166)	10/26/1997 10:09:00 AM
From: fut_trade	Respond to of 27307

I don't short stocks -- but I'm glad you were successful. Good luck. Peter

To: Jumper who wrote (2166)	10/26/1997 1:53:00 PM
From: Bill Harmond	Read Replies (1) \| Respond to of 27307

Jumper, I read your link, and I think you're engaging in simplistic, monolithic, and dangerous reasoning: exchange2000.com What does an adjustment in the semiconductor and multinational sectors because of Asian curriency instability have to do with the rest of the market, specifically Yahoo? The US market is very strong, and the monetary underpinings here are better than OK, at least for now. The US financial stocks are as strong as ever, the Utilities traded up on Friday, and the US Treasury-bond market, which also rallied Thursday and Friday, is the new global reserve currency, replacing gold. The Asian currency crisis is happening because of the strong US dollar, which virtually assures us that the Fed will not be raising rates soon, because that would only make the US Dollar more attractive, and distablize Asian currencies even more as money flows into the US at an even-faster rate. The Asian crisis is deflationary, because imported goods will be even cheaper. For now that's good, unless it spells deflation here. The jury's out on that one, but in any event we can bank on lower-than-expected interest rates in the US. To me that means no P/E compression in hyper-growth companies like Yahoo. This current situation reminds me of the Mexican currency crisis in late 1994. The US market was unsteady that fall for a while, but the disinflationary implications of that crisis set the US market up for another disinflationary bull run. The key point is that US interest rates are still too high relative to the rest of the world. They ain't going up. As long as you can find stocks whose earnings are unaffected by this crisis, you should do really well. Your sox may come off, but keep your pants on.