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

To: Don Westermeyer who wrote (15124)	3/22/1998 11:10:00 PM
From: Bonnie Bear	Respond to of 18056

Don: I stayed out of junk bonds but bought a utilities fund. Hard to say- if the market tanks hard and everybody chases yield, junk could be just fine. Junk bonds are certainly better than junk stocks. I just got info from salomon bros on their junk fund HIF- it's pretty good junk, I can't see a lot of downside on short-maturity junk from junior telecoms and such. just about everything I have is high book value and high yield, I've been making the same bet that everybody will chase yield as soon as the market starts crumbling. Ed yardeni forecasts interest rates moving net down from here for the next two years...his track record is terrific, I wouldn't want to bet against him. maybe any bump up in interest rates should be viewed as a buying opportunity.

To: Don Westermeyer who wrote (15124)	3/23/1998 8:19:00 AM
From: Tony van Werkhooven	Read Replies (1) \| Respond to of 18056

Two more issues to consider when reacting to deal among oil producers: 1. How long will a "deal " succeed in keeping pricing down - see last sentence in todays WSJ article: "In any case, the output cuts are likely to be temporary, if only because producers outside OPEC will feel free do as they wish once prices recover." 2. Coming down the road we have the impact of additional Iraqi oil. Hence, I don't see this event causing a change in overall market phychology. Comments? Tony