Subject: IC940707: Dollar, P/E, Fund closed

From: "Gray Zhu, 800-289-2498, 212-279-6700" <[email-masked]>
Date: Thu, 7 Jul 94 21:37:25 CDT

==================    IC940707: Investment Club  ======================

1. Dollar come back? .................................... Gu Quanzhong
2. P/E .................................................. Xiuchun Tian
3. John Hancock Freedom Regional Bank Fund 
           is to be closed on July 25 ....................... Gray Zhu
_______________________________________________________________________
   (be sure to read the Disclaimer in the end if you have not read)
 
>From: Gu Quanzhong - Chealth <[email-masked]>
>Subject: Re: Fed: No interest rate raise this time.

I don't think the dollar will make a big comeback anytime soon as long as
the trade deficit between the US and Japan remains.  However, if the US raises
interest rates and other G-7 countries cut theirs, the dollar may change
direction.  

The FOMC meetings in the past two days indicate no change in money policy
and that the Fed won't raise interests rates to rescue the dollar.  If the
US economy grows too fast, however, the Fed is expected to raise interest
rates again, even before the next FOMC meeting in August.  The market is
focusing on tomorrow's payrole and employment numbers.  The bonds will
react to these numbers and so will the stock market.

The weakness of dollar, however, should help boost earnings of companies
which export products to Japan and other European countries.

- Ken

2. P/E

>From: "Xiuchun Tian" <[email-masked]>
>Subject: P/E

>Hi, Dr. Zhu,
>I have been reading your (and others's) postings on icnet.  I am puzzled by
>the term P/E.  What is it and What does it tell us?
>Thanks.
>Cindy T.

Gray: P/E = Price of stock / Earnings per share per year by the
company.  There is no definite standard on P/E ratio.  If you take the
average of all stocks in the market, it is probably like 17 or 18 at
this time.  High P/E stocks are likely to be aggresive growth stock,
which may have higher risk level. Many blue chip stocks have P/E
around the avereage. Stocks have low P/E due to different reasons.

It may be a good idea to compare P/E of companies in the same industry
at the same time, such as Ford and GM, Coke and Pepsi.

-Gray

3. John Hancock Freedom Regional Bank Fund is to be closed on July 25.

I can't help telling you the news that, my favorite fund, John Hancock
Freedom Regional Bank Fund is going to be closed to new investors
after July 25, 1994, a decision made last night by the Board of
Directors.

Due to superior performance, the Fund has attracted huge amount of
money. The new money are just partially invested, because the managers
wanted to make very careful selection of the portfolio. In order to
keep a very good healthy size and good profitability for the existing
investors, they decided to closed the fund to new investors after the
date of July 25, 1994.

Since this is one of the top funds out there, I think it might be a
nice opportunity for many of us. If you miss this one, you are
probably missing an investment opportunity of a lifetime. 

-Gray.

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