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 : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Dr. David Gleitman who wrote (68756)	10/2/1998 8:51:00 AM
From: Mohan Marette	Respond to of 176387

Are near the bottom ? Events to watch today. David: Events that may move the market today. Oct.02,1998 NEW YORK (CBS.MW) -- Gains in Asia following passage of a Japanese banking reform measure may hearten U.S. markets at the open Friday, but heavy losses in Europe may wipe out any optimism. In the U.S., a September employment report due out Friday morning may move markets. "It's a valid worry, but I would argue that credit is drying up more on Wall Street than Main Street, where sophisticated investors are having trouble getting credit on the same terms they had just a couple of weeks ago," said M. Cary Leahey, U.S. economist at High Frequency Economics Ltd. "The impact on Main Street is pretty small right now. The reason for that is that banks are extremely well-capitalized compared to 1990. "The stable and low federal funds rate of the early-to-mid 1990s was a way that banks could really beef up their balance sheets," Leahey added. "So there may be some drying up of liquidity, but it will be nothing like 1990 unless the banks completely lost their eyes on the ball and just gave away far too many loans to highly leveraged players." "I think most of the stock market's damage has been done," said Arthur Bonnel, who runs $95 million as portfolio manager of the U.S. Global Investors Bonnel Growth Fund. "The reason I think we're near a bottom is that the Asian crisis has been worked on for well over a year and I think they're close to a bottom," he said. "If they're close to a bottom, the third-quarter earnings results for U.S. corporations will be poor, but next year's reports will be relatively easy to meet. Therefore, next year is going to show shome pretty good gains.