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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Tom Hua who wrote (5660)	3/27/1998 7:25:00 PM
From: Pancho Villa	Read Replies (2) \| Respond to of 18691

>The Commerce department reported today personal income rose 0.6% last month while consumer spending rose 0.4%. Guess where the other 0.2% went?< Actually, you cannot do the math this way. Your calculation assumes that the previous month's consumer spending and personal income are fairly close. Assuming your approximation is correct I guess some of it ended up in the market but in my opinion there there were stronger forces: 1. I have this vision of a bunch of oriental investors (or is it gamblers?) who got burnt back home and after the stock market and currency crashes view the US market as a low risk proposition: they probably think: A 20% drop? OK, I can take that risk, that is nothing for what I have seen back home! So they continue to invest here like crazy....:-) 2. Short covering may have been a factor in many stocks such as AOL YHOO etc. 3. MM getting rid of idle cash. 4. People investing year end bonuses which were probably very hefty, and the usual buy high crowd... Pancho