Look to the laggards as blue chips begin to top out

The Ticker

June 17, 1998|By Julius Westheimer

WHERE WILL THE stock market go from here? Where should you put money now?

"When is enough enough? The answer is now. The average stock fund rose 11.51 percent in the first quarter. If that performance continues, this year's gain will be 60.79 percent, an unreasonable expectation. Count your blessings, count your profits and start selling." (Investment Quality Trends.)

"Don't be misled by occasional surges in the Dow Jones average. More important than blue-chip strength is the broad market's horrid action. Number of stocks hitting new highs is lackluster in face of Dow strength. We call for extreme caution." (Professional Tape Reader.)

"When the Dow was at 9,200 my model showed stocks 20 percent overvalued. Now the market is less than 10 percent overvalued." (Byron Wien, Morgan Stanley.)

"It's hard to stay bullish on blue chips, and time to look to laggards. The big money will now come from laggards like Newmont Mining Corp., Crescent Real Estate Equity Co., Vail Resorts Inc. and New Plan Realty Co." (Personal Finance.)

Pub Date: 6/17/98

Baltimore Sun Articles
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.