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

To: Tommaso who wrote (11862)	12/18/1997 8:56:00 PM
From: Joss	Respond to of 94695

Hi Tommaso, Good question regarding the decoupled action of the US and Japaneese markets. I think they became somewhat re-coupled when the asian crisis came to the forefront. For example, money is coming from Japan to assist SE Asia. If a great deal of that money is destroyed in the markets and banks must defalt then Japan cannot help as much and theymust repatriate YEN by selling dollar denominated assets. Bad for us. So, I think that the coupling occured when we all began to sense that the brink was near and if we didn't work together, we might fall in. On your points about printing money...I think if it came to that that the Japaneese and US govts would like to do that together. Doubt if you could get the germans to go along, but it is one way to stave off a depression....I have been thinking about this w/r to gold. I am not a gold bug and don't own more than a few gold coins from long ago, but it is something to think about. Steve

To: Tommaso who wrote (11862)	12/18/1997 8:58:00 PM
From: Rajiv	Respond to of 94695

The Japanese markets did their own (down) thing for years while US markets rose to incredible new heights. Why should there be any more connection now than in past years? The japanese markets did their own thing (independent of the US markets) for long. But with the current levels of the Nikkei we will see lot of companies sink. And these will not be "foodstuffs" manufacturers but the pillars of the japanese economy. And they will not go down without a fight - they will try to get out of their overseas positions to support their domestic markets. I am purely guessing - we will see a 50 pt drop in the Nasdaq tomorrow. And possibly a 200 pt slide for the Dow Regards Rajiv