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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (31781)	8/29/1998 5:48:00 PM
From: Knighty Tin	Read Replies (2) \| Respond to of 132070

To All, Looks like SI is working now. Barron's was great this week. 1. Abelson takes a nice shot at Stanley the Drunken Miller from Soros. Despite all the kudos Druck got from the rest of the press, Alan had the temerity to mention that Stan's comments have now proven to be at least 500 Dow points premature. <G> I enjoyed it because I have a bone to pick with trend following folks who pretend to be contrarians. And those who don't seem to understand the overvaluation of stocks in this shaky economy. Of course, if Soros yells loudly enough and makes enough political contributions, he may convince the Treasury to pick up his losses. <G> The S&P pe ratio chart in his column is also instructive to those who believe minor dips doth a bottom make. 2. The separate interviews in one article with Marc Faber and John Makin were fun. Faber made a great point that the world's GDP is $22 trillion while the financial markets churn at $1-2 trillion a day. Anyone who doesn't think that is excessive is mathematically challenged, IMHO. He also believes that lowering US rates might cause another jump in bloated financial assets, but would do nothing for the world economy. Folks just won't borrow the money at any rate if there is no demand for their products. Makin was interesting despite hanging out at the reprehensible American Enterprise Institute, a place that tries to pretend that conservatives can be intellectuals. <G> He mentions that 900 on the S&P might be normal valuation, which I think is kind of high. But it would mean another drop of about what we've had so far this time. Some bulls might not like that. 3. I can't find the article right now, but somebody mentioned that every fund in Michael Price's part of Franklin/Templeton/Mutual Series is under water this year. No wonder the guy sold out to suckers willing to pay top dollar. No fool, our Mr. Price. It also points out one of my long term concerns: what kind of performance incentive can make a guy work hard when he has just banked a check for a gazillion dollars? 4. An article where the top strategists at Wall Street cat houses tell us everything is cool. 5. Another article where the top technicians, if you can be the top of a field that is a total scam, tell us that the market is going lower. Much lower. That one scares me somewhat. However, since the technicians always grab a bus in the middle of the ride, and then get off in the middle on the way back, I suppose I can take comfort from the fact that the market can still go down even with the technicians aboard. They are like running backs who run 1000 yards sideline to sideline, but never rack up any goal line to goal line yardage. <G> 6. Sad, embarrassing letter from a Roland G. Caldwell in Florida. Not only does he attack bears in a week when the Dow had its second largest point drop in one day, ever, he defends the lending practices of the large banks in a week when they all fessed up, partially, and wrote off a small part of their many mistakes. Roland sounds like he may have a bad dose of foot in mouth disease. <G> MB