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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Stitch who wrote (2900)	4/4/1998 7:27:00 PM
From: Zeev Hed	Respond to of 9980

Stitch, those savers are not much more cautious than American savers were in the 1950 to 1970, holding their money (and only up to $100,000) in saving accounts. Since then a big shift has occurred, and until another melt down hurts a lot of people, the move toward greed, while slow, will prevail. Initially, I think that "safe" foreign bonds bearing 5 to 10 times higher interest rates will be the place some of these saving will go to. This will cause readjustment of interest rates overseas (relative to Japan) lower and higher in Japan. As foreign money managers start and put a foothold in Japan, the door to foreign equity markets will open wider. This is not something that will happen at once and not for the next six months, but keep this in mind if you become too bearish, there is a huge pool of investible savings looking for better returns. Zeev