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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Gaston Teran who wrote (14233)	11/14/1997 11:21:00 AM
From: IQBAL LATIF	Respond to of 50167

I think stocks will only be affected by Nekkei troubles- the package was considered short of many expectations of income tax cuts- bonds are reflective of risk premiums related to overall equity market future viz a viz Japan- it also entails some premiums for troubles in Gulf however it will sell if equities show some kind of stability- market need some worries a market driven by fears of world financial system coming to an end and maintaining a semblance of order is a market which will surprise many a 'bears' the dismal forecasts are every day relegated to thoughts of past- Klic earnings is one good example we see some order here but this fear propogated and fanned will soon evaporate once every one realises that Japanese banks are not going under- corporate earnings will dominate the scene of the markets soon and bond market normal relationship will emerge- I think bonds are heading lower before breaking permanently 6.00%. Japan by next week will show some direction- if Japan weakens ultimately bonds will sell as TB's will be sold at the moment my concerns primarily remains stability to return in global markets and some return of order in Gulf.