Third Millennium Advisors-Crisis Investing "the book"

Crisis Investing "the book"

You've heard about the Y2K (or the Millennium Bug), which will cause millions of computers to crash or spew bad data unless their internal clocks are fixed before January 1, 2000. The experts believe it is highly likely that sometime late in 1999 we will experience havoc in the stock market and that that stock prices will drop sharply in anticipation of the crisis as companies and governments start admitting they have not fixed their computer systems. The result could be a nearly 50 percent drop in the Dow Jones to the mid-5,000s.

In this thoroughly researched, balanced book, Jay Kuo and Edward Dua show you specifically how you can protect your assets and profit from this predicted financial crisis. Unlike other Y2K books, Crisis Investing for the Year 2000 digs deeply into five key industries which the authors believe will experience significant disruptions and corresponding market value loss from the millennium bug.

This book will help the reader think for themselves as it relates to developing a personalized investment strategy for the year 2000. Also included in the book are portfolio weighting strategies, specific stock recommendations and a wide cross section of various trading techniques.

Here are some illustrations of what could happen:

Y2K will disrupt time-sensitive industries. Because Y2K affects time-based calculations, sectors such as banking that depend on the accuracy of dates are potentially in trouble. In addition, because Y2K will cause significant delays in operations, it will strike companies such as General Motors that rely on "just-in-time" supply chains and services.

Y2K will impact automated processes. Companies that rely totally on computers to make their products or offer their services are particularly vulnerable.

Interdependent business systems are at high risk. When a manufacturer farms out production to thousands of smaller outfits, or when companies become networked to one another, Y2K poses a significant threat. Telecommunications, utilities, banks are especially at risk.

Critical dependence on government or foreign operations is a death knell in Y2K. Government systems are lagging far behind, so airlines, which depend on reliable and efficient air-traffic control, are in deep trouble.

Banks such as Chase Manhattan and BankAmerica that do extensive business overseas will also suffer earnings hits as important counterparts that are unprepared for Y2K fail worldwide.

As investors worldwide seek safe harbors from Y2K devastation and supply-side inflation, gold and the dollar are going to shoot sky high, as will futures and call positions in those markets. The bond market will be bid up furiously as the Fed moves to add liquidity and reserves. When the stock market crashes, those who have sold short or bought LEAP puts, or put options against vulnerable stocks and stock indexes will cash in.

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