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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Investor2 who wrote (1140)	9/22/1998 5:35:00 PM
From: Justa Werkenstiff	Read Replies (2) \| Respond to of 15132

Another Bullish View These are hard to come by these days <GGG>: by Joe Battipaglia, Chairman of Investment Policy 9/14/98 As far as I am concerned, the market spent the months of July and August perilously going towards a bottom as it expressed extreme pessimism on several obvious issues. First, there was the fear of financial meltdown in Southeast Asia. Secondly, there was the fear of a global economic collapse as weakness spread to include other emerging markets. Then there was the concern of the return of communism to Russia. Finally, there was the frightening specter of an impeachment process in the United States of the most influential man in the world. These factors have lead to a dramatically oversold position for the market, which I believe is not sustainable. In fact, I believe the market's bottom was reached a weak ago and that we are poised for an explosive upside rally. The reasons for this rally are as follows: First, we have record low interest rates that will remain intact tact for at least the near term. Secondly, American corporations will emerge from this turmoil as "world beaters". These company's will gain market share against competition and will re-enter emerging markets once again in a leadership role with the strength of a global currency, the US dollar at their back. Interestingly enough, I believe the emerging markets will once again be a draw for capital as they work their way out of recession. However, this flow of capital back into the emerging markets will not be such a drain to prevent our equity markets from moving significantly higher as one of the few areas of opportunity in the world. Therefore, I see global liquidity looking for investment opportunities as a major factor in driving the US equity markets substantially higher. Perhaps contrary to popular opinion, I do not believe that we will see a global economic meltdown because the US Treasury and Federal Reserve, in conjunction with the G-7 nations will not stand idly by and witness a contraction in global liquidity. In terms of a global economic collapse; as we have said from the beginning, the United States will continue to carry the rest of the world as it has for most of the post war era. As far as Russia is concerned, it is not a communist state but merely a country in disarray attempting to transition itself from a third world to a second world nation, which is a long term process. As for the potential for impeachment proceedings in The United States, I think that last week's market action is very telling. Upon delivery of the report, we saw the market drop significantly over the course of two days. However, on Friday the market rebounded and mounted a rally. once it had a chance to see that the report contained nothing more than various depictions of sexual escapades. This being the case, I expect the financial markets to continue to rally because the events depicted in the report may or may not be impeachable offenses and may leave some room for compromise. In this scenario, the President may very well finish out his term with a stern reprimand. These potential outcomes would be well received by the markets. All in all, I think we are going to have a massive rally commencing shortly which will take us to nominal new highs before the year is out. I am fearful that we will miss it if we do not act now. Therefore, I urge you to take this message to our clients and build positions in both large and small companies and be prepared to take advantage of the Transportation and Financial Services industries since they are the most depressed.

To: Investor2 who wrote (1140)	9/23/1998 12:32:00 AM
From: Lars	Respond to of 15132

Investor2, >>> Justa: I have been blessed in life with a good memory but since I assumed the helm of this thread it has not been all that good. I cannot remember if what you said happened. I guess it might turn on the definition of the word "was." "Was" could mean that he did say it then and meant it then but that was then and this is now and so he might not believe it today if he were asked if you know what I mean because I have no idea if you get my drift. So why it might have happened, I just don't remember it. I do recall, however, that Brinker likes ginger ale and enjoys a good run along the beach. >>> Now you know why I have trouble with Justa and the catalog. He just can't give me a yes or no answer. HA!