Hunker down, investors. The 1990s will be a leaner decade for stocks.
At least that's the gospel according to Robert S. Killebrew Jr., managing director of Alex. Brown & Sons Inc., a Baltimore-based money-management firm. Mr. Killebrew was in Philadelphia last week to talk about investment strategies with some of the firm's clients. The picture he painted was not rosy.
"There will be gainers and losers," he said. "But there will not be enough on the table for everyone."
To survive the downturn, he said, stick with quality stocks -- those with a history of steady growth. Also, look for companies that have carved out a niche for themselves.
The market will favor stocks with favorable price-to-earnings ratios, he said. In other words, stick to stocks that sell at a low price relative to their per-share earnings.