To:Bobby Yellin who wrote (326) From: John Barendrecht Tuesday, Jul 8, 1997 10:32 PM Respond to of 80051
Naive investors could fuel crash - Inexperience can lead to panic, financier says The Ottawa Citizen
MUNICH -- International financier George Soros said that world stock markets may be headed for a crash caused by a panic among "inexperienced" investors, the German weekly magazine Focus reported.
"Lots of new investors are appearing who have only a little experience with financial markets," Mr. Soros said in an interview with the magazine.
"If this trend suddenly comes to a halt, the investors could fall into a panic and leave the market at once. Then there would be a stock market crash.
"In addition, the portfolios of large investors are more and more internationalized. When a big market collapses, there is a domino effect, and it leads to a crash on exchanges worldwide," Mr. Soros told the magazine.
He added that his observations are "only theoretical."
Mr. Soros, who now has about $10 billion U.S. under management, manages the $1.3 billion Quantum Quasar International fund and $1.2 billion Quantum Emerging Growth fund, both hedge funds, among others.
His bets in world currency markets helped earn him an estimated $1.1 billion in 1993.
"I don't think in any case that my words will provoke a stock market crash," he told the magazine. Mr. Soros's comments are translated from German as they appeared in Focus.
The Dow Jones Industrial Average crossed 7,900 for the first time today.
"The current situation could go so far that it reaches the point where financial markets are too far from reality," Mr. Soros told the magazine.
To:carpe diem who wrote (330) From: John Barendrecht Tuesday, Jul 8, 1997 10:37 PM Respond to of 80051
Australian golds regroup as bullion beating abates Tuesday July 8 9:25 PM EDT SYDNEY, July 9 (Reuter) - Australian gold stocks headed to the upside for the first time in five sessions on Wednesday with the gold index gaining 2.8 percent in early trade.
Normandy Mining (NDY.AX), the sector heavyweight constituting over 20 percent of the gold index, added nearly four percent to A$1.33.
Among others, Plutonic Resources (PLU.AX) climbed about three percent to A$3.50, Sons of Gwalia jumped 5.7 percent to A$4.65, Acacia Resources (AAA.AX) rose 3.9 percent to A$1.34, while Great Central Mines (GCM.AX) was up nearly two percent at A$2.19.
Newcrest Mining (NCM.AX), beset by problems at its high cost Telfer mine in Western Australia, firmed early to A$2.71 but had drifted four cents lower to A$2.60 by 11.00 a.m. (0100 GMT).
While the uptick was greeted with relief by traders, they said investor enthusiasm was likely to be muted as a keen watch was kept on gyrations in the bullion market.
``It will take while before we see investor confidence come back into this end of the market,'' said a senior dealer at a Sydney-based investment bank.
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