Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Jack Clarke who wrote (7987)	11/15/1997 10:02:00 AM
From: Elllk	Respond to of 18056

Jack Good post. I saw the interview also while I was surprised by Lindsays forthright comments I actually though Hormats would try to give more of a positive spin than he did. Larry

To: Jack Clarke who wrote (7987)	11/15/1997 1:18:00 PM
From: tekgk	Respond to of 18056

The guy from Goldman, Sachs was interesting. Somewhere I read a post or article that Goldman, Sachs issued to their big customers (naturally I can't find it now). It was just the opposite - extremely negative. If someone has it a re-post would be nice. One message for the big boys and another for the retail market -g-.

To: Jack Clarke who wrote (7987)	11/15/1997 1:40:00 PM
From: kormac	Read Replies (1) \| Respond to of 18056

Jack, thanks for the post. I saw it at 7:00 pm and decided to tape it as it is replayed on my cable at 11:30 pm. Your transcription is very accurate. This is the first time I saw Lou's smirk disappear. You know he is the right guy for this job, since he has this affable style, for one could not afford to have an exitable fellow who shifts from euphoria to sky is falling at every turn. Nevertheless, what Lindsay said is very sobering. I am sure if Lindsay had not been a guest, Hormats would have been more bullish, as Goldman has to withdraw from equities in an orderly manner. I am in cash now, not only in my brokerage account, but also in my and my wife's IRA's. Regards, Seppo

To: Jack Clarke who wrote (7987)	11/15/1997 3:08:00 PM
From: Rational	Respond to of 18056

Jack: The problem in Asia is due to over-capacity through high leverage. Expanding economies tend to over-build as once Texas did. This will have the same kinds of effect in SE Asian countrues as in Japan which is still reeling under over-capacity problems. As Japan suffered, US benefited mainly from imports. Such deflation overseas results in relocation of jobs overseas: But US consumers benefit as their surplus increases and stockholders get richer. This results in a tremendous shift in wealth among people in the US; but overall US prospers as it did due to trade liberalization and deflation overseas in the past and US will continue to benefit in future. I do not see any impending crises in markets. There will be short-term gyrations, IMO. The P/E of S&P and DJIA are still below that for the Hang-Seng index and Nikkei. P/E is approximately the reciprocal of the rate of interest in the economy; it is the price paid per dollar of income (as opposed to interest rate). We should simply watch out for corporate earnings, interest rate and growth in earnings. It is difficult to predict that the expected earnings will decline more than already revised. One has to very selective about buying and selling stocks now because any secular increase or decrease in the price level across the board is unlikely until the expected interest rate and inflation level change. Sankar