Cash is nice, as is investing in a proven winner

The Ticker

July 31, 1998|By Julius Westheimer

NOTES AND QUOTES about your money:

CASH IS KING: "In this high market, never forget cash. It carries no risk, is plenty liquid and pays a solid, inflation-adjusted return." (Wall Street Companion.)

LOOKING FOR GROWTH? "Invest in proven winners -- companies that showed strong, rising earnings and dividends for 10 years. They consistently outperform the market. Examples: AMP Inc., Luby's Cafeterias Inc. and Washington REIT." (Bill Staton, financial planner.)

WANT INCOME? "Attractive Stocks With Rising Dividend Records," according to S&P Outlook: Albertson's Inc., Avery Dennison Corp., State Street Group and Travelers Group Inc.

WALL STREET WISDOM: "The stock market always goes to extremes." (John Templeton) "Buy stocks when blood runs in the streets." (Peter Lynch) "You make big money by being on the right side of major moves; don't try to swim up Niagara Falls." (Martin Zweig) "This recent decline wrung out excesses. I still expect a much higher market by year end." (Laszlo Birinyi.)

SMALL IS BEAUTIFUL: "Don't overlook good values in small firms. This year, the S&P 500 index is up 17 percent versus the Russell 2,000 small-cap index, ahead 1 percent. Estimated earnings for small-cap stocks will rise 18 percent in 1998 versus 7.5 percent for the S&P." (Kiplinger Washington Letter.)

Money manager Kenneth Fisher says, " Small stocks will have their day again. When? Not until the end of the next bear market."

QUICKIES: "August historically gets clobbered during bear markets, except when July is hammered earlier." (1998 Stock Trader's Almanac.)

"Never buy a stock by phone solicitation. It's impossible to judge a recommendation or credentials of the callers." (American Association of Individual Investors.)

"No stock is ever completely worthless; you can always use it as a horrible example." (Paul Miller.)

Pub Date: 7/31/98

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