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To: Cynic 2005 who wrote (4255)	8/22/1998 11:20:00 AM
From: HH	Read Replies (1) \| Respond to of 86076

They shoot horses, Don't they ? Here is a list of the world's stock indices and their percentage down as of friday close (8/21/98) from their YTD high. Most of the Asian indices blew out some time ago, other non-Asian developing countries blew out next , while most developed industrialized countries reached peaks July 18-20. Asian: Australian-------down 9% HK(Hang-Seng)----down 37% Japan------------down 12% India------------down 32% Indonesia--------down 32% Malaysia---------down 58% Pakistan---------down 46% Philipines-------down 41% S. Korea---------down 48% Singapore--------down 45% Taiwan-----------down 23% Thailand---------down 57% Developing non-Asian Brazil-----------down 45% Chile------------down 37% Venuzuela--------down 71% Mexico-----------down 37% Peru-------------down 61% Russia-----------down 79% Turkey-----------down 27% Industrial/mature economy Canada-----------down 20% Germany----------down 17% France-----------down 11% Belgium----------down 7% Spain------------down 12% Switzerland------down 13% Austria----------down 20% UK---------------down USA--------------down 9% This is looking very ominous, espescially when you consider these peaks about 1 month ago. Recession(depression) outside the mature economies can spread inward. Political unrest is an obvious risk. So much for "give peace a chance" HH

To: Cynic 2005 who wrote (4255)	8/23/1998 1:03:00 AM
From: Skeet Shipman	Respond to of 86076

MMV I agree, dubious accounting practices have become increasingly prevalent. It is very informative to compare the per share rate of growth of companies retained earnings verses reported earnings growth. Many big names fail this test. The game is to defer expenses until you have an excuse for a writeoff. This is most easily identified using the quarterly reports on a per share basis. ( One well known equipment provider with reported growth rate in the forty percent range has only a nine percent growth rate of retained earnings per share. ) As long as these ?growth? companies can keep revenues growing by acquisitions or actually selling at a loss, they look great in IBD's tables. When a slowdown comes their ?earnings? declines will be accelerated by their deferred expenses. The PEs the market gives these companies are ludicrous. Skeet