|
PureBytes Links
Trading Reference Links
|
Secondly, the “Star War” pet project of president Bush has been proved today
to be a dream that would be unable to protect the American population from
terrorists attacks. Again high tech and huge amount of taxpayers’ money is of
little help to fight determined terrorist.
Thirdly, we all go through metal detectors and X-Ray machines before boarding
aircrafts. Yet fanatics have been able to smuggle weapons in order to
highjack several airplanes.
As for the World Trade center itself, it may look as another failure of
technology. It was planned to stand a 707 crash. The fact that the World
Trade Center has been targeted twice is no coincidence. To gather so many
people in the same place was an accident waiting to happen. The fact that the
technology did exist to build it should not have been a reason good enough to
do it. Again there was a huge amount of money spent and a naive belief in
technology. Yesterday’s tragedy may lead the American people to reassess its
belief in technology. A very possible consequence of yesterday’s horror may
be a continuous slide on the technology laden Nasdaq index. All the stock
indices will suffer, as whole sectors of the economy will be hurt: financial
services of course (some of them head-quartered in the World Trade Center,
other had their back offices), airlines, hotels etc. but the Nasdaq is likely
to suffer the most. In last week’s newsletter (see our web site
www.alterama.com) we were forecasting a drop of the S&P500 to 930, an
objective that we might reach sooner than we thought. As for the Nasdaq 100,
we reiterate the objective of 1,100 that we stated several times in 2001.
Jean Jacques Chenier
Alternative Asset Management, Inc.
Tel: 646 840 0385
E-mail: JChenier@xxxxxxxxxxxx
|