Small caps may be ready for big move

The Ticker

April 28, 1999|By Julius Westheimer

SUGGESTIONS for wiser investing:

"Despite recent underperformance, small-cap stocks belong in all portfolios. This bull market has been driven by large-company stocks but small caps have outperformed large-cap stocks over time and may do so again." (ARS Financial Services)

"If you put 10 percent of a $70,000 salary in a 401(k) with a 50 percent employer match on the first 6 percent you contribute, and your investment grows at a modest 10 percent annual rate, by year-end your money will have almost doubled. Your cost: $4,830. Your total: $9,529." (Money magazine)

"It's easy to lose money. Here's how: Follow the crowd, buy only `penny' stocks, hold your losers, sell winners, don't check on your portfolio, gamble with high-risk stocks, trade often and panic in market corrections." (Dick Davis Digest)

"Everybody out of the pool! A top is near. Face it: roughly 70 percent of stocks were in their own bear markets for a year." (Richland Report)

"Successful investors pull back when risk increases. When stocks plunge to where everyone is scared and bargains appear, they get back in." (Wellington Letter)

"The Dow can't plunge? Dream on. Even though this strong economy looks powerful, that doesn't justify stocks going much higher, and the bubble could burst." (American Prospect)

Pub Date: 4/28/99

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