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To: HerbVic who wrote (18559)	9/27/1998 1:15:00 PM
From: Phillip C. Lee	Read Replies (2) \| Respond to of 213177

<<I agree. And a potential sell off would affect blue chip stock more than high techs as well, but in any flight to liquidity there could be collateral damage to even the best of companies. AAPL would no doubt recover, but the danger of a broader market sell down is not imagined. It is not a week to ignore market news and moves. Buy and take advantage of what is sure to be an interest rate rally, but listen for any disturbances to the natural rhythms of the market. >> Surfacing hedge funds financial difficulties and losses will benefit to international stock markets because most of banks will tighten their credit lent to hedge funds. LTMC is an obvious example who played heavily on currency movements using heavy borrowing money on bets. LTMC bets on all contracts with a total of 100b, 50 times of their assets using quantitative analysis banked on historical data. I think they are gambling with investors money. The bail-out of LTMC will make the domestic stock market in better shape. At least, they have more time to recover back their losses if stocks/bonds/currencies they are involved bounce back in a short time frame. They said risk management is a key to success, however, it seems they didn't take well on risk assessment and to heavily counted on historical data. I think the overall exposure on such event is a good news for the entire domestic stock market as well since they have learnt a lesson on how to control their greedy minds and the stocks volatility will be significantly reduced. Phil