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> The Zurich Investment Group Newsletter
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> U.S. Market Update
> 
>  .Global Quantitative Strategy
> 
> Monday
> March 25, 2002.
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> <http://www.zurichinvestmentgroup.com/zuckerman.jpg> Mark Zuckerman
> Managing Director
> Research
> Zurich Investment Group
> E-mail <mailto:[EMAIL PROTECTED]>
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> Market Comment
> The market appears to be working hard to do something but remains stuck 
> in a range. The DJIA and Nasdaq both have good support and resistance 
> levels within a few percentage points either way, and although the 
> market may look volatile on an intra-day basis, the overall movement for 
> the near term could continue to be basically flat for some time, in our 
> opinion.
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> <http://www.zurichinvestmentgroup.com/ch/arrowRight.gif> -U.S. Market 
> News <http://www.zurichinvestmentgroup.com/signews.htm> 
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> <http://www.zurichinvestmentgroup.com/us_pic.jpg> NEW YORK -- The Dow 
> broke a five-week winning streak as investors braced for the 
> first-quarter pre-announcement season, which kicks into full gear over 
> the next couple of weeks.
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> <http://www.zurichinvestmentgroup.com/ch/arrowRight.gif> _Asia Market 
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> <http://www.zurichinvestmentgroup.com/asia_pic.jpg> TOKYO- Fears over 
> the government's reluctance to take additional anti-deflation steps 
> dampened Tokyo's market sentiment, sending stock prices sharply lower 
> Friday.
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> <http://www.zurichinvestmentgroup.com/ch/arrowRight.gif> _Europe Market 
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> <http://www.zurichinvestmentgroup.com/europe_pic.jpg> LONDON - After 
> more than a month, where all signs pointed to recovery, investor 
> enthusiasm seems to be waning as markets struggle to break out of their 
> current trading ranges.
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> <http://www.zurichinvestmentgroup.com/ch/arrowRight.gif> _Taiwan Market 
> Update <http://www.zurichinvestmentgroup.com/signews.htm> 
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> <http://www.zurichinvestmentgroup.com/taiwan_pic.jpg> 1. Local consensus 
> is for the TAIEX to range between 5,900 and 6,250 this week. Taiwan's 
> economy is in a strong cyclical recovery phase. Taiwan's leading 
> economic indicator (LEI) due out this Wednesday, forecast to continue 
> rising. U.S. economic figures due out Tuesday, March 26 -- durable goods 
> and consumer confidence. Thursday, March 28 -- final 4Q 2001 real GDP 
> growth number out.
> 
> 2. Taiwan domestic mutual funds average equity holdings 81.0% (up 0.54 
> percentage point); OTC funds average 87.0% (up 0.78 percentage point), 
> as of March 22. No major change week-on-week.
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> DOWJONES
> 10,427.67
> -52.17
> -0.50%
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> NASDAQ
> 1,851.39
> -17.44
> -0.93%
> 
> NEWZEALAND
> 2067.71
> +7.73
> +0.38%
> 
> TAIWAN
> 6178.08
> +37.66
> +0.61%
> 
> HONGKONG
> 10863.07
> 0.00
> 0.00%
> 
> FTSE100
> 5250.50
> -2.80
> -0.05%
> 
> NIKKEI225
> 11261.11
> -83.97
> -0.74%
> 
> AUSTRALIA
> 3377.40
> -4.20
> -0.12%
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> Equity Analysis
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> James Morgan
> Senior Analyst
> E-mail <mailto:[EMAIL PROTECTED]>
> 
> The recovery is "different" in that it is front-loaded, the inventory 
> drawdown exceptionally severe and it is more likely that consumption 
> will slow rather than accelerate.
> Specifically, top of the list is the "upside- down" behaviour of US 
> consumer spending. Next comes the almost unprecedented severity of the 
> global inventory run-down last year, when 9/11 caused an abrupt 
> reduction of activity in many sectors on top of large cutbacks that had 
> already been implemented. Also on this list of special factors is the 
> way that the tech sector led the world economy down last year.
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> Market Report
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> Monica Marais
> Senior Analyst
> E-mail <mailto:[EMAIL PROTECTED]>
> 
> - Growth Stock: HOLD-rated SLR reports 2Q EPS at bottom of its range.
> - Value Stock: Reiterating BUY on Ford and $22 target price.
> - Value Stock: Increasing target price on BUY-rated HCP to $45.
> - Value Stock: Raising target price on BUY-rated BR to $51.
> - Utility Scope: Raising price target on BUY-rated PGN to $55 from $50.
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> Equity Analysis
> 
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> Joseph Wong
> Senior Analyst
> E-mail <mailto:joseph.wong@zurichinvestmentgroup>
> 
> Companies Included
> CHKP Nokia's move would favorably impact CHKP's top line growth while 
> supporting its high margins.
> FNM Bi-partisan legislation was introduced late Wednesday that would 
> repeal Fannie Mae and Freddie Mac's exemption from SEC requirements.
> FRE Bi-partisan legislation was introduced late Wednesday (March 20) 
> that would repeal Fannie Mae and Freddie Mac's exemption from SEC 
> requirements.
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