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To: Frank Povoski who wrote (4442)	10/27/1997 1:59:00 PM
From: Steve Lewis	Read Replies (1) \| Respond to of 11555

In terms of the market decline due to short term issues: 1) While the dollar is stronger and causing countries to deal with their "pegged currency" issues, doesn't it also mean that dollar denominated assets, including stocks, become more valuable (relatively speaking)? (I understand that the stock market is reflecting the concern that the markets(Asia) they sell into may not have the $$ to buy, but some items like semi equipment are going to take it harder rather than sales of SRAMs & MPU's.)

To: Frank Povoski who wrote (4442)	10/27/1997 2:11:00 PM
From: Rob S.	Respond to of 11555

The market was in the territory of "irrational exuberance" up to a couple of weeks ago. The pendulum had swung too far and despite fair earnings reports from most companies, all that was needd was for something to draw money out of the market to collapse inflated prices. The fundamental situation hasn't changed. The US economy is strong and our primary markets are unlikely to be effected that much by troubles in the few Asian economies that comprise less than 7% of our foreign trade. The pendulum may well swing far to the other side of the irrationality scale to the ppoint where bargains are apparent. Once the fear sets in, it's hard to tell where it can go. I think that we have one or two days of extreme downside before the slide has begun to ease or reverse. My guess at this point is for a reversal in the market by the end of this week or early next. I wish I had been short several of the stocks that I recognized that had far exceeded their normal valuations. The semi equip stocks had run to very high historical valuations for most measures, susc as P/E, P/sales. Now most of them are down by 1/3 to 1/2 or more. This is a great time to sell puts on stocks at panic sale prices. Rake in the money from other investors irrational fears that their stocks will not have a bottom.