Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: MileHigh who wrote (6998)	9/8/1998 2:08:00 AM
From: Michel Bera	Respond to of 93625

MileHigh, * General Market, hence half OT ** When there is a huge correction, there are always gurus that come up with a model "I said it before !". Here is one from the Magnum Fund (quite a bit hedge fund, I think). 2 bear years... ---- snip --- Princeton Economics Correctly Predicted July 1998 Stock Market Correction; New Hedge Fund Capitalizes on Forecasting Ability NASSAU - August 25, 1998 - An artificial-intelligence-based computer model that compares current world economic statistics to data going back more than 100 years has helped accurately predict the July 1998 stock market correction. As early as May 1997, the proprietary model, developed by Princeton Economics International (PEI) at a cost of more than $60 million, forecast a shift in capital flows worldwide that PEI reported in several issues of its publication, the Princeton Capital Markets Review, would likely signal an important turning point for U.S. and European markets in July of this year. These markets, as it turned out, experienced severe declines in July. The accurate prediction is the latest in a series of soothsaying accomplishments by PEI, which accurately forecast the 1987 stock market crash, the 1994 bond crash, the depreciation of the dollar in 1995, the demise of the yen since mid-1995, the Asian crisis in late 1997, the October 1997 stock market correction, and the current problems being experienced in Russia. Giving investors the benefit of PEI's forecasting ability, PEI, which was also ranked the #1 non-Japanese analyst in the world this year by the major institutions in Japan in the Nikkei Financial Daily's 10th Ranking of Popular Analysts, recently launched a hedge fund sponsored by Magnum Global Investments, Ltd. The new Princeton Global Fund, which began on July 1 of this year, already has capitalized on PEI's predictions, gaining over 30% in an exceptional first month by shorting various stock markets. The fund can trade long or short in any market throughout the world (stock markets, currencies, interest rates, commodities, etc.), taking advantage of the computerized model's monitoring of all markets, economies and political statistics as well as net capital flow worldwide. "It is becoming increasingly obvious around the world that economic or investment analysis can no longer be conducted on a purely domestic basis," says Martin Armstrong, PEI chairman. "The speed with which capital is capable of moving means that any economy can be disrupted by international capital flows due to external considerations. It is in this growing age of internationalism that PEI has devoted its resources to providing the most complete global capital flow models ever constructed." In an August 14 article, Armstrong predicted that the current correction might last two years. In the near term, he wrote, "we remain bearish as we look ahead to the weeks of August 17th and September 7th/14th as the next key targets for turning points ahead. The most concerning factor that we must consider is that there has been no significant rally whatsoever since the July 20th peak. This warns that despite the bullish outlooks that prevail, real selling is taking place and far less bottom picking has emerged. The phrase 'buying opportunity' appears to be falling on closed ears. While at some point in time there will be a 7-10% recovery from an initial low, the risk of a second leg down still remains quite high by mid-September." For more information, contact Dion Friedland at magnum@magnumf.com or via Magnum's on-line information form.