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

To: Frodo Baxter who wrote (4329)	6/10/1998 7:31:00 AM
From: MikeM54321	Read Replies (1) \| Respond to of 9980

Lawrence, If I implied that "Asia is good for us," meant "individual corporations," it was inadvertent. I think most will agree, that I was pretty clear in the last few months about this. Usually this statement is made during a reference to the, "US Economy." The point being, it keeps inflation down so it's good for the "US equities" markets. My commentary was that although the Asian Crisis may be good as an inflation fighter, is this a case where the cure may be more damaging than the disease? I just don't want to write this out in it's entirety each and every time I reference, the Asian Crisis problems. On your other point, I have heard quite a few professionals who make a living buying and selling stocks for others, clearly try to justify the, "Asian Crisis is good for corporate profitability." During the early stages, quite a few "professionals" were alluding to the fact that high tech companies would even profit during the crisis! The reason being, most high tech companies have Asian manufacturing arms or relationships, and this would reduce their costs so they could make more profit. Unfortunately, I bit on that one and didn't make more prudent decisions when I should have. Even today, there are many "professionals" who are currently saying the Asian Crisis is good for some US companies. The reason being that goods they import are less expensive, so therefore their profits will rise. This may or may not pan out. But the point is, you said you you haven't heard, "ANYBODY," suggest this. But this is not an accurate statement. Here's my real point. The professionals have a vested interest in the stock market, They don't usually advise their clients to sit on the sidelines, cease trading, and wait this out. The brokerage houses don't make a lot of profits this way, and the portfolio managers, who are generally fully invested, don't want their values to go down. So they naturally lean towards putting a positive spin on such an negative event, such as the Asian Crisis. So it's up to the individual investor to dig through the facts and try to come to their own conclusions and not to simply repeat the Wall Street mantras. That is what this thread is all about. Appreciate your comments, MikeM(From Florida)