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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: Bill Wexler who wrote (2286)	8/29/1998 8:30:00 AM
From: Mr. Pink	Respond to of 18998

Like Euripedes' Trojan Women, market participants have awoken from a financial Bachanal. Some have awoken wondering "what have I done" while others are still trying to sleep off excesses from the celebration. Soon the financial crisis in Russia will set off more than just rumblings in other economies, Japan, Asia etc. will face further collapse. Liquidity will dry up like an old whore. The individual investor will seek safety and escape the market and redeem 401k programs. Many will default on credit card debt used to buy margined securities. In September, hedge funds shall face massive redemptions followed by more at the end of the year. War will break out in some other unsuspecting terrorist based country. And Mr. Pink and his friends, although saddened by the fate of the world will have preserved their capital or some might make a small fortune by being on the right side of the coming financial collapse. On the other hand, the market might "melt up" at any time leaving shorts flat footed and vulnerable. Sentiment is so negative and short selling has increased making the market succetible such a scenario. Mr. Pink's solution: maintain a balanced portfolio long value and short overvalued scams (such as ACRT). This should protect you in either scenario. And while you will not make as much in a collapse, you went get burned in a market rally. Stay cool and stay flexible and be willing to change your mind on a dime. Mr. Pink