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.

Strategies & Market Trends : Why the markets will continue higher... -- Ignore unavailable to you. Want to Upgrade?

To: current trend who wrote (366)	1/6/1998 5:40:00 AM
From: GROUND ZERO™	Respond to of 745

Hi CT, Does this answer my question about why the markets will continue higher? It sure does, thank you for finding and posting that article. It was intelligently written and makes excellent sense. Much appreciated. From the article, I gather that the U.S. equities will be the greatest benefactor of market turmoil in other parts of the world. GZ

To: current trend who wrote (366)	1/21/1998 2:05:00 AM
From: current trend	Read Replies (1) \| Respond to of 745

Why the market will go higher-- by Joe Battipaglia, Chairman of Investment Policy 1/20/98 The New York markets after rebounding off of recent lows in the area of 7600, are beginning to move higher. We are seeing very good action overseas, particularly over the weekend. The Korean market which was off approximately 40% last year is currently-up 40% in 1998 and the year is still young. Similarly, other foreign markets are starting to stabilize as well. On a short-term basis, I believe confidence will not be further rattled. Additionally, we are almost finished with the earnings season and on-balance the numbers are good with corporate management continuing to be optimistic for 1998. I believe that there are some key ingredients for 1998 for continue growth in the U.S. markets. For starters, recognition by the Federal Reserve that inflation has been vanquished and the discount rate to move lower. I believe this is critical to facilitating business, expanding multiples further and maintaining confidence. Secondly, we need to see the U.S. economy being measured by consumer spending, housing starts and industrial production. I believe that these market indicators will remain at relatively strong levels, which is possible since there are very few impediments to business and consumers alike. Lastly, the overseas markets have to witness stability in the currencies of Korea and Hong Kong in order for capital to start to move back into the area which will restore confidence and add value to the IMF's bailout packages. I believe this is all very possible through the course of this year, thus enabling the Dow and S&P to reach new high ground probably this summer. We are maintaining a 9000 target on the Dow, which presents significant opportunities in equities. Technology, although dead recently, continues to offer compelling growth. I believe news such as faster Internet speeds may accelerate spending on technology platforms in 1998 and 1999. Once again showing the renewable capabilities of technology companies to create new demand where once there was none. Healthcare and Pharmaceuticals are a clear story for us. When you can charge 3x the price for the same good coupled with 60% margins reinforces my confidence in this sector. Furthermore, today's life insurance acquisition is another example of my growing belief of additional consolidations in financial services. The big themes for 1998 will continue with acquisitions and mergers and growth in the area of 12% to 15%. I remain encouraged by the rally in foreign markets of this weekend. This report is only a summary of research reports published by Gruntal & Co., L.L.C