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Investment Views (November 27th 2000)

Markets in General

Since we're nowhere near a resolution in the presidential elections,
we do not expect the markets to recover decisively. So we're
sticking to our opinions of week before last.

Two weeks ago 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. Nasdaq had been hit especially hard.
The 3000 level did not hold, although we had a rebound on Friday.
The Dow was much stronger. The 10200 level held. Since the market
is becoming really oversold, we expect a short rebound.

How long does it take to work off the extreme overvaluedness of the tech
stocks? Most internet stocks have fallen more than 60%. Indeed some
are reduced to about a quarter from their highs. Yet nobody seems to
be in a hurry to do any bargain hunting. Thus we remain extremely cautious
about the market.

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 even tested the 6000 level again. We have no idea, when this
slide will be over. The European stocks have corrected even more than
the Nasdaq. These stocks are becoming bargains.

The Swiss market was one of the few markets that did not correct massively
last week. 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	8050	8090.30	7998	8081.50
E 48.30	12.40	26.75 (2000)	+21.49%	AT&S	32.50	30.50	27	30.50
SFr. 4000	2475	1351(1998)	+115.47%	Bachem	2911	2965	2905	2907
Gbp 15.77	8.28	4.9(1998)	+68.98%	C&W	8.28	9.69	8.89	9.39
E 368.90	210.10	140(1998)	+27.28%	Cap Gemini	178.20	175.90	159	168
SFr.44.25	20.20	10(1998)	+107.50%	Ericsson	20.75	20.65	19.10	20.50
E.102.50	E.16	14 (1999)	+128.14%	Evotec	31.94	28.99	25.72	28.70
E.104.60	70.10	98.50	+2%	Fresenius Medical	100.50	98.56	96.10	97.70
E 97	70.25	37.8(1998)	+133.73%	LVMH	88.35	80.80	77.90	79
Sfr.275	133	60(1999)	+121.66%	New Ventur	133	131	126	130
E.64.90	37.50	7.50(1997)	+502.26%	Nokia	45.17	50	46.85	50
SFR.19400	17600	SFr.16900** (2000)		Roche GS	16915	17045	16945	17025
SFr.456.33	218	46.66(1997)	+475.44%	SAP	268.50	224.75	212	218.75
E 97	33.10	17.7(1999)	+20.17%	Sonera	21.27	24.95	21.22	24.52
SFr.850	660	460(1998)	+142.39%	Syn-Stratec	1115	1080	1060	1061
E 18.325	4	3.725(1999)	+490.60%	Zeltia	22	20.58	19	20.50

*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.

We have eliminated Biodata from our recommended list, because it has lost more than 20%
from our recommended level. We advocated systematically selling stocks that have
lost 20%, because we believe it is better to get rid of the losers than holding on to them.

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Currencies and Bonds

Despite of the election mess, the US dollar is exhibiting amazing strength. The Euro remains
extremely weak, because the European multinational companies are on a buying spree in the
US. We don't see the trend turning soon.

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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!