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

To: Paxb2u who wrote (9751)	11/15/1997 3:00:00 PM
From: GROUND ZERO™	Read Replies (1) \| Respond to of 94695

Hi Peter, The strong dollar over the yen is killing the Nikkei. I understand the Japanese are selling their equities around the world to buy back their yen in an attempt to support the yen's decline. The Japanese are heavily invested in Brazil, which is why the Bovespa is being trashed. The companies themselves are still sound. Who knows when the final bottom tick is hit. But, it really doesn't matter. I respectfully submit that it's really an irrelevant question. A 2« year low in the midst of a crisis is appealing. The problem is currency related, with little to do with the intrinsic value of the companies listed with the index or their businesses. Markets generally recover. I think risk capitol with a 2-5 year perspective will pay off big. I bought the Nikkei along with the Hang Seng. We all know that we should buy low and sell high, but people are afraid to do it when the time comes. Yet, that's the only way to profit. There's no real money to be made by playing nickel and dime ticks, unless you're a floor trader. Right now, the Japanese market is caught in a currency wind sheer. Anyone's guess is as good as mine where the bottom is. That having been said, I think it might be worth a try here or wait until you see 12,000. I'll tell you another interesting idea. Shorting Japanese bonds. Their long term rate is now 1«%. If all else fails to support their currency, they will have to raise their rates to attract foreign investment. 1«% is an all time low for them. Therefore, longer term, there's great opportunity to cash in on the current Japanese confusion. I always say that in confusion, there's a profit to be made. It's amazing how true that is. Have a great weekend. GZ