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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Brad Bolen who wrote (9350)	11/8/1997 4:29:00 PM
From: IQBAL LATIF	Read Replies (1) \| Respond to of 94695

INTC came shy of earnings by 3 cents the market took 25% off the market captilisation of INTC within 30 days- how many times you have seen properties values eroded overnight as a result of interest hike or any other earning surprise- the property bubble bursts as a consequence of bursting of the market bubble and hence is much more a complicted problem it leads to longer peroids of slow down like Japan is presently entrapped in- I don't consider US markets to be a part of this global problem because no one has borrowed short money against over-inflated assets to invest in markets- if this was the case in DOW we would have already seen much higher level of redemptions- the Mutual Funds are under no pressure to sell as investors are in for long haul (401plansand pension funds) they have not borrowed short money for this long haul- I would agree with your assumptions if DOW was supported by inflated assets what I call as' hot money' in Manhattan that would have resulted in long 'bear market' as banks would pull the plug and to meet bank obligations one round of selling would invite more ferocious other rounds of selling. It is this single reason that market refuses to budge in lock stock and barrel although individual stocks not meeting market expectations are taken to cleaners, a market so concious of earnings and macro realities is not a mountain of irrational hype.