Investview

Index

Investment Views (November 13th 2000)

Markets in General

Last week we had expected the American presidential elections to be
over with by Wednesday and the market to embark on its yearend
rally. But we were wrong. The election is not over yet. And we
have no idea when it will be over. Wall Street hates uncertainties.
The double uncertainties of a weaker economy plus political uncertainties
united to hit the markets hard. All the markets in the world fell, even though
this is an American problem. Next week will be crucial. The 3000 level support
on the Nasdaq will be tested. As we had repeatedly pointed out, the Dow is still
stronger than the Nasdaq. We expect the Dow to hold the 8200 support level.

The European markets follow the Wall Street, although the European economy
is not as weak as analysts expected. The uncertainty of the US presidential
election is weighing strongly on the European markets, given the role
of the US as the world growth engine. The German market index, the Dax,
is below 7000 again. So we expect a further pullback to the area of 6600
and 6500. The CAC is weak as well. We really have no idea, when this
slide will be over.

The Swiss market was one of the few markets that closed in positive territory
last Friday. The Swiss market is heavy on old economy defensive stocks.
Therefore it is no surprise that this market is holding up better than most other
markets. But we should not forget, Wall Street still is predominant in trendsetting.
We could therefore see the SMI falling to the 7800 level.

Stocks

Our favorite stocks remains SAP, Nokia, Ericcson, Cable and Wireless.

High of the Year	Low of the Year	Price and year of recommend.	Performance since recommend.	Stock	Last Week's Close	Daily high	Daily low	This Week's Close
8080	6968			SMI	8062.10	8053.90	8014.50	8050
E 48.30	12.40	26.75 (2000)	+21.49%	AT&S	32.50	33.90	32.50	32.50
SFr. 4000	2475	1351(1998)	+115.47%	Bachem	2986	3000	2911	2911
E 420	207	260 (2000)	-8.85%	Biodata	258.10	240	215.10	237
Gbp 15.77	8.28	4.9(1998)	+68.98%	C&W	8.59	8.76	8.13	8.28
E 368.90	210.10	140(1998)	+27.28%	Cap Gemini	183.10	186.10	174.30	178.20
SFr.44.25	20.20	10(1998)	+107.50%	Ericsson	24.90	22	20.20	20.75
E.102.50	E.16	14 (1999)	+128.14%	Evotec	37.40	34.81	31.20	31.94
E.104.60	70.10	98.50	+2%	Fresenius Medical	98.50	101.84	99.50	100.50
E 97	70.25	37.8(1998)	+133.73%	LVMH	86.50	85.95	83.30	88.35
Sfr.275	133	60(1999)	+121.66%	New Ventur	134	135	130.25	133
E.64.90	37.50	7.50(1997)	+502.26%	Nokia	50.79	48.05	45.13	45.17
SFR.19400	17600	SFr.16900** (2000)		Roche GS	16720	16950	16715	16915
SFr.456.33	218	46.66(1997)	+475.44%	SAP	291.50	281.50	260	268.50
E 97	33.10	17.7(1999)	+20.17%	Sonera	24.50	22.80	21.26	21.27
SFr.850	660	460(1998)	+142.39%	Syn-Stratec	1189	1158	1102	1115
E 18.325	4	3.725(1999)	+490.60%	Zeltia	22.20	22.80	22	22

*We decided to calculate the performance since recommendation, because we have recommended the different stocks
to buy at different times. Since we're convinced that one should be long term investors, we think the performance
since recommendation is a better reflection of our goals. **adjusted for Givaudan spinoff.

Last week we decided to put Fresenius Medical Care into our recommended list. Fresenius is the largest
dialysis equipment provider in the world. Its' revenue has increased over 30 % per year
last few years. It's not a cheap stock. But we decide that quality has its price. And we saw the
stock rising more than 2% last week after our recommendation.

For more than a year people went overboard buying the so called "new economy" stocks that
promise to be noncyclical and have high growth rates. But as the red hot US economy
cools down, we see the high tech bubble bursting. These companies are obviously
not immune to economic slowdowns. People are piling into the defensive stocks.
We would be very careful. The market could overdo caution.

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Currencies and Bonds

The European Central Bank intervened on Friday, even though the Euro had recovered
from its low around .8225. The Euro jumped above .87 level briefly, before falling
back to .86 level. Until the Euro goes above the .90 level, we do not see a turn around
for the Euro yet. The dollar has exhibited amazing strength. It has barely budged throughout
the uncertainties in the presidential elections. We expect it to rise after the election mess is
cleared up.

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The World Financial System and World Trade

Lately we have seen a truely thoughtful review of the world financial system in the Business Week .
We certainly feel vindicated in our views stated during the last world financial crisis. We remember
the outcry in the Western press, when Malaysia imposed financial controls essentially forbidding
foreign investors to exit Malaysia. The Western press also made a big deal, when Hong Kong's
government intervened to support the market and driving out the short sellers. Ironically these
two countries are the most successful in recovery after the 1998 financial crisis, while Thailand being
the country that really tried to follow all the prescriptions of the IMF and other free market advocators, has
yet to see its economy recover from that vicious attack of international short sellers. We're happy
to see that people are slowly coming to see that unrestrained free markets can cause hevoc in
developing economies. That the world need a new financial order. Let's hope that the US
will not stand in the way of reforms of the world financial system.

*The stock prices are provided for informational purposes only and not intended for trading purposes. The opinions expressed in these pages are what they are: opinions!