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

To: robnhood who wrote (14994)	3/19/1998 11:16:00 AM
From: Thomas M.	Respond to of 18056

Money Hell? -g- Tom

To: robnhood who wrote (14994)	3/19/1998 12:11:00 PM
From: Bonnie Bear	Respond to of 18056

well, the question I had was a little different. The money can go into bonds, cash, to the MMs, or into other equities. Or real estate and property. Or pay off overextended debt. When I look at chinese(beijing) companies, for instance, they are selling at at least a 20x discount to the US market- the MMs can take money back, but I'm inclined to think this market is rabid enough to slosh around for years and build up the equities markets of lots of emerging markets. The market has a huge appetite for risk- especially the pension plans. That is, at a global level, we are seeing an increase in M2, an increase in global wealth and energy consumption, and an equalization of wealth from richer nations into poorer nations. This may be the right time in history to buy into the stock markets in Beijing, India, Chile, Mexico, etc, when they are very depressed...I doubt they'll go down much further (unless they disappear into communism/fascism) and the upside is explosive if the collective pension money decides the risk is acceptable again. The US gets deflation and the rest of the world gets inflation.