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Technology Stocks : BORL: Time to BUY! -- Ignore unavailable to you. Want to Upgrade?

To: Neil Booth who wrote (7021)	10/29/1997 10:54:00 PM
From: Paul Corbett	Read Replies (1) \| Respond to of 10836

A note on "Asian volatility" The long term impact of this on Wall Street will be small. Why? Because the markets will get used to it and factor it in,just as "volatility" in exchange rates is factored in. If a market for example level everyday for a year and then falls 15% it produces a shock wave... or if you like the proverbial "butterfly" in the chaos theory. If the same market habitually trades at + or - 15% it will do nothing. Traders in that market or those exposed to it can cover by using put and call options or buy and sell futures or similar instruments. It is really amazing how quickly people adapt to change. For example gold miners frequently use sophisticated financial instruments to stabilise their selling price even when the gold market collapses. Another example is exporters who hedge against exchange rate movements in a number of ways of which you are all familiar. It is only a matter of time before traders in volatile markets hedge as well. Some further comments on the HK market. I think it is about the world's six biggest after US Japan UK Germany and France. There are massive US and UK mutual funds in the market - I think something like 60 billion $US. It will be interesting if it can retain 6th position and all these funds after the last few weeks...I think not.