KOREA

[11/01] Now that the Kospi is above 400 again, we are downgrading the Korean stock market from a "strong buy" to a "outperform/hold".

[01/07] South Korea's currency, the won, closed at 1,745 against the dollar, vs. 1,742 Tuesday. In its report, the Korea Economic Daily said the government forecast the dollar would average 1,500 won in the first half of 1998 and 1,100 won in the second half.

As we agree more or less with this forecast, the conclusion is obvious and this will be our last Korea post until our May global midyear update.

[12/29] 3/3! Again we make 15-22% on KF, KIF. The won rose sharply against the dollar on Friday to around 1,500 after ending at 1,836 at Wednesday's close; KOSPI up to 376.

[12/24] With the Won almost at 2000 (10% depreciation) and KOSPI at 351, this is a BUY for US!!! Friday, if down again, we BUY again for weekend IMF/US/JAPAN bandaid fix.

[12/12] Since profiting 10% on a quick speculative trading buy on Korea, we feel confident in recommending a first speculative/intermediate investing buy on Korea next week. The Korean market and the Won, worst case scenario, are within 10 - 15% of major bottoms - so if you are inclined to be contrarian, the Korea Fund (KF) or Korea Investment Fund (KIF) may be your cup of tea.

[12/16 ]Note: Issued when Kospi was at 350; closed today at 404. The Won appreciated 10% after government announcements to free float. A quick 10-20% profit (12/12 KIF close 3 1/8; KF close $6). However while this can be an a highly speculative intermediate term contrarian investment, there is obviously much danger ahead.

Remember however, always to check with your licensed financial planner or broker before acting upon the recommendations of the Astrologers Fund, Inc. This is just the starting point of your research. and you must carefully investigate before you buy/or sell.