Whether stocks rise or fall, an expert will have predicted it

The Ticker

May 27, 1998|By JULIUS WESTHEIMER

DO YOU WANT to put money in the stock market, keep what you have there or take it out? Here are some ideas. Take your choice:

BIG SMILE: "In view of stronger earnings growth forecast for next year, we expect the Dow Jones average to hit 10,105 in 1998 and head toward 12,125 over the next 18 months." (Thomas Galvin, strategist.)

GLOOM & DOOM: "Wall Street was built on the concept of taking perfectly reasonable ideas and bidding them up to astronomical prices at which they're unreasonable. If we're not there now, we're getting awfully close." (Jeffrey Bronchick, investment officer.)

WHAT TO PICK: Here are some "Stocks for Superior Long-Term Total Return" from S&P Outlook, May 20: AT&T Corp., Bristol-Myers Squibb Co., First Union Corp., GATX Corp., Mobil Corp., SBC Communications Inc., Southern Co.

THE ROAD LEAST TAKEN: "Nobody likes you when you're down and out -- except savvy investors. If you play favorites, maybe it works at the racetrack, but in Wall Street it's a loser. Companies most loved will cool off, but out-of-favor companies -- often thought headed for oblivion -- will 'travel to where they belong' and often be propelled upward." (Bloomberg Personal Finance.)

REDUCE RISK: "Stock and mutual funds swing from day to day, month to month. If you invest systematically, putting in, say, $50 a month, you even out those price swings. It's called 'dollar-cost averaging' and automatically reduces risk." (Investment Savvy.)

DO-IT-YOURSELF: "If you're a stock market junkie, how do you get your 'fix' when you're commuting, traveling on business or on the golf course? Think wireless. An array of new pagers, Internet-ready cell phones, etc., which help traders monitor equities any place, any time." (Business Week, May 25.)

WALL STREET WATCH: "For the stock market to continue at its torrid pace, or even at a 10 percent growth rate, earnings must accelerate or interest rates decline significantly." (Robert Rodriguez, mutual fund manager, in this week's Barron's.)

"The recent consolidation resulted in a modest 5 percent decline. Another push into higher ground is imminent." (Harley Market Letter.)

"A market correction may be getting under way. Hold your winners, sell your losers. Then keep cash on the sidelines." (Cabot Market Letter.)

"Clearly, the dangers of owning stocks are increasing at an alarming rate." (Crosscurrents.)

"There wasn't a 'liquidity crisis' in Asia that's now behind us. There's a solvency crisis in Asia that will jump up and eat a few banks before it's all over." (Investor's Edge.)

Pub Date: 5/27/98

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