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To: SecularBull who wrote (68561)10/1/1998 12:19:00 PM
From: MichaelW  Read Replies (1) | Respond to of 176387
 
Thanks Long, very good analysis.

I believe we really need confidence back into the markets. Maybe we'll get that in a few weeks. October generally sucks.

Lets not forget about Clintons hearing on Monday, that should be good for another 100 DOW points.

MW




To: SecularBull who wrote (68561)10/1/1998 1:31:00 PM
From: jim kelley  Respond to of 176387
 
Re: New Highs in the market as we move into January 1999

LTC was a highly leveraged market neutral arbitrage hedge fund.
There are over 1000 hedge funds. Some are long. Some are short the market. Some are market neutral like LTC. Some invest in equities. Some invest in equities and derivatives. Some invest in combinations of equities, derivatives, commodities, indices, and futures.

The market neutral funds are likely to be the most highly leveraged.
Hopefully, these funds have adjusted their exposure during the last two weeks especially since August. In August the only hedge funds doing well were the short hedge funds.

The good news is that all this turmoil is likely to put enough pressure on Japan and the other countries to cause them to get off their buts and correct their financial policies. Too much stuff has been left unfinished from th IMF funding, the World Bank, and the interest rate adjustments around the world.

We have major financial events ahead of us for Japan and Europe coming on January 1, 1999. This is now a mere 3 months off. These events are likely to be major positive events for the US stock market. Interest rates must be adjusted on a global basis to prevent huge outflows of money from Europe and Japan due to interest rate differential.

Therefore, expect a new rally in the US stock market as Greenspan continues to adjust monetary policy in the next few months. It has to happen. The interest rates in the US have to decline. This will drive the markets too new highs.

In the meantime, we will continue to experience this heightened volatility as the world markets respond to one inititive after another from a host of countries.




To: SecularBull who wrote (68561)10/1/1998 2:35:00 PM
From: Ken Beal  Read Replies (1) | Respond to of 176387
 
--- OT ---

Hi LOD,

Re: Eventually, the liquidity that bailed out LTC won't be available if this keeps up.

So perhaps we should go start a hedge fund so we can invest irrationally and know that the government will be there to bail us out.

(Freeus, obviously I'm kidding. ;-)

Seriously, I think people should be responsible for their actions. How does this bailout (or FEMA, for that matter *) encourage that?

Enjoy,
KenB

* FEMA encourages builders to build in danger zones, because they can build there every year and the government (our tax money) pays for the re-construction. Builders who do not take advantage of our tax dollars in this manner will fall behind builders who do -- so thanks to these policies, it's in the builder's best interest to build in danger zones. How's that for warped priorities?

Just thought of a solution: our tax dollars should only pay for houses that have been there for X years (2, 5, 10, not sure) -- that way builders will have incentive to build very sturdy structures there, so they last more than the next hurricane (or other danger) season. And if they can hold up through one season, they'll be much more likely to withstand for years.