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

To: Rational who wrote (9582)	11/26/1997 11:03:00 PM
From: Bonnie Bear	Read Replies (2) \| Respond to of 18056

Sankar: I just re-read some news posts on Japan and its effects on our markets. A tremendous amount of energy is given to explain how much of our treasuries are owned by Japan and justification given why they won't sell bonds. I know that the Japanese have also been huge buyers of U.S. stocks. I find it strange that I can find NO information on the amount of stocks they own and what it will do to our stock market if they sell their holdings. If you or anyone on the thread sees this info, please post.

To: Rational who wrote (9582)	11/27/1997 11:32:00 AM
From: Cynic 2005	Read Replies (4) \| Respond to of 18056

Sankar, I agree on the possibility of lower margins. Corporate profits may increase if the demand continues to be high. Higher demand, to some extant, is dependent on the health of the stock market itself. The wealth effect on consumers and corporations, as pundits put it. A sick market and visible decline in liquidity will cause consumption to drop turning this virtuous cycle in to a vicious cycle. This earnings warnings season determines the fate of the markets more so than the most recent ones. IMHO! After all, even the "new-era" bulls seem to have realized that it is tough to lift a 1000 pound rock than lifting a 700 pund rock! And having some grease on the 1000 pound rock doesn't help either. -Mohan