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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Bobby Yellin who wrote (17373)	9/3/1998 1:01:00 PM
From: Ray Hughes	Read Replies (1) \| Respond to of 117016

Bobby: We've got mutual fund investors who bought on margin and now are getting called. So, fund managers will likely have to raise more cash. I think the market will slowly ooze downward for weeks to come as the margin squeeze plays out. That sets the stage for period big, splashy short covering rallies. Finally, I'd guess in about 3 months, the selling will have worn itself out. That agrees with your surmise of a late autumn-early winter rally. Then, with few sellers, stocks reasonably price in relation to the then-perceived business outlook, which ain't so bad in US of A, quiet bargain hunting will set in. Smart money would keep powder dry for a few more weeks, watching closely for signs of reduced volatility to show that the market correction has run its course. Then I'd buy a little bit of Asia Funds, a lot of big cap funds. I think pros will want good liquidity after this, so they will concentrate on the big caps for a year or two. RH