Heads Up - Asian Markets in Trouble - DOW dropping - 10:30 EST

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-- (index@link.now), March 13, 2000


ASIAN MARKETS: Hong Kong: -689.78 [was down over 800 earlier this evening] Taiwan: -617.65 Japan: -560.47 finance.yahoo.com/m2?u

Rebound Unlikely.. biz.yahoo.com/rf/000313/c4.html

Techs Take the Hardest Dive.. biz.yahoo.com/rf/000313/c6.html

Cable & Wireless Top Losses.. biz.yahoo.com/rf/000313/cx.html

US Bloodbath by morning?? www.cme.com/cgi-bin/gflash.cgi

-- (me@me.too), March 13, 2000.

NASDAQ already -121 10:35 am EST


-- (not@panicking.yet), March 13, 2000.

At the time you posted this the NASDAQ and Dow were already on their way back up! Profit taking in the morning, bargain hunting in the afternoon today.

-- now (itsb@ck.up), March 13, 2000.

Man, what a weird trading session. I'm no tin-foil, but I got to wonder what's happening behind the scenes.

-- (me@me.too), March 13, 2000.

At what point are the market controls put into place? Or are they? Didn't see that trading was suspended at any point.

-- suzy (suzy@nowhere.com), March 13, 2000.

NYSE last revised the rules late in 1998: NYSE Board Revises Trading Collars and Eliminates Sidecar Rule

Summary: Program "collars" kick in on a decline or advance of 2% until the market stabilizes.

If things get more dicey on any given day, NYSE trading halts fro one hour on a decline of 10%, 2 hours for 20%, and closes for the day on 30%.

Hard to imagine the sort of market panic that would take 10% or more off an entire index in one session, but it's certainly happened to whole sectors of stocks (such as consumer products), so it's entirely possible.

Very few folks are worried right now, despite all the news. The market no longer really responds to news or analysis or much of anything else except psychology/movement/momentum. That's just the "reality" of the market right now.

-- DeeEmBee (macbeth1@pacbell.net), March 13, 2000.

One of the reasons given for today's tech selloff (along with Japan's GDP stumble) was the letter from Warren Buffett confirming that he has no intention of joining the "tech mania". For anyone who's interested (and has not yet visited the site), here's a link to two versions (PDF and HTML) of Warren Buffett's Annual Letter to Berkshire Hathaway shareholders.

Two very interesting comments:

Page 15 - We made few portfolio changes in 1999. As I mentioned earlier, several of the companies in which we have large investments had disappointing business results last year. Nevertheless, we believe these companies have important competitive advantages that will endure over time. This attribute, which makes for good long-term investment results, is one Charlie and I occasionally believe we can identify. More often, however, we cant  not at least with a high degree of conviction. This explains, by the way, why we dont own stocks of tech companies, even though we share the general view that our society will be transformed by their products and services. Our problem  which we cant solve by studying up  is that we have no insights into which participants in the tech field possess a truly durable competitive advantage.

Page 16 - Berkshire will someday have opportunities to deploy major amounts of cash in equity markets  we are confident of that. But, as the song goes, Who knows where or when? Meanwhile, if anyone starts explaining to you what is going on in the truly-manic portions of this enchanted market, you might remember still another line of song: Fools give you reasons, wise men never try.

Friends, Warren Buffett says that (a) he see no tech companies in which he and his partners perceive a durable competitive advantage, and (b) the equity markets are not currently a source of significant opportunity. One would be wise to listen and act accordingly.

-- DeeEmBee (
macbeth1@pacbell.net), March 13, 2000.

Sorry about the unclosed tag. To quote a former regular: *sigh*

-- DeeEmBee (macbeth1@pacbell.net), March 13, 2000.

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