Meekly reversing a 10-day decline of 152 points, the Dow Jones average edged up three points yesterday, closing at 2,913.01. With two days to go in the year's first half, the Dow indicator is now ahead 279 points, or 11 percent, since Jan. 1.
AND NOW WHERE?: "Odds for major decline triggered by massive freefall in Japanese markets are very high." (CS Technical Investor). . . "Dow Jones average could plunge to 2,300 by this fall. People should be 40 percent in cash." (Ned Davis). . . "Momentum and prospects for improving profits should provide foundation for higher stock prices." (Standard & Poor's Emerging & Special Situations). . . "With a 3.1 percent dividend yield, a 20-to-1 P/E ratio and a 2.4-to-1 price/book ratio, the DJ is historically overvalued and a sharp decline should soon occur. Undervalued stocks and utilities are the only safe groups." (Investment Quality Trends). . . "The market expects earnings growth, but that could be wrong. Wall Street's second half won't equal its first." (Robert Stovall).
HELPFUL HINTS: "In the 1990s, interest rates could drop to very low numbers. Too many people stay too 'short' with CDs, bonds, etc., but I like the 7-10 year range." (Charles Clough, chief strategist, Merrill Lynch). . . "A cow for its milk, a chicken for its eggs and a stock, by gosh, for its dividends! We don't know who said that, but it's a principle many investors forget." (Mutual Fund Forecaster). . . If your income is now $40,000 a year and stays there, that sum will be worth only $24,556 in the year 2000 with 5 percent inflation. It will be worth just $15,076 in 2010. . . If you're interested in local stocks, phone Legg Mason's Gerald Scheinker (486-8010) for his firm's "Mid-Atlantic Review: Why We Like to Invest in Our Own Back Yard," including reports on Black & Decker, Giant Food, Washington REIT, Rite Aid, etc.