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To: McNabb Brothers who wrote (27347)1/11/1998 5:06:00 AM
From: Paul van Wijk  Read Replies (2) | Respond to of 176387
 
Hank,

>> Wish I could day trade some of my shorts, but as soon as I did
>> a stock like AOL or YHOO could drop 20 or 30 points in no time
>> at all and I do not want to miss out on a move such as that!

Am I right that the continued rise of Yahoo & Aol after you start
shorting them make you run out of "bullets". In another, is the strategic reserve increasing because of your bad timing on those?

Just curious.

There is another question I want to ask you. I assume you know that
there is a relation between the P/E of stocks and the interest-rates.
Interest rates are dropping fast last months so stocks deserve a
higher P/E. At the end everything comes to getting the best return
on invested money.

Don't you think that this will lead to a stronge rise of the
companies that don't get hurt by "the Asian flu". In other words,
the earnings of these companies stay the same, but because the lack
of better investment oppurtunities their P/E can rise.

Another question to you is "where do you think all the money that
is "on the side-lines" will go".
Short-term everyone in using the bonds as a safe-haven. But it won't
stay there forever. The more people buy bonds, the less the
return on it will be. This trend cannot go on forever, as you know
what I mean. So it is time to think what could be the most profitable
place to put your money when you don't have the chance to buy bonds.

I don't say the above make sense, just wondering. Let me know what
a senior bear like you think about it.

Paul