Don't buy or sell shares ignorantly

The Ticker

May 19, 1999|By Julius Westheimer

HERE ARE some suggestions about your investments:

AVOID ERRORS: "Two of the biggest mistakes individuals make are threats in this market. The first is paying too much for stocks. Second is selling stocks for wrong reasons -- curbstone gossip, scare headlines, `breaking news' bulletins, etc. Avoid both. Fundamental analysis has been replaced by `follow the money' and `just go where everyone is else splurging.' " (Better Investing)

PAYOUT: "An income-oriented stock paying a `no-growth' dividend carries a bond's downside -- no inflation protection -- but without a bond's income or principal guarantees. A steady dividend rate is not good enough; steady growth of dividends should be your standard." (American Association of Investors Journal)

BOTTOM FISHING: These stocks appear in Standard & Poor's Outlook under "Laggard Stocks We Like: Rising Earnings, Depressed Prices": American Electric Power Inc., Chesapeake Corp., Clayton Homes Inc., Diebold Inc., OfficeMax Inc., Ohio Casualty Corp., Saks Inc., Texas Utilities Co. and Universal Foods Corp.

SPREAD IT AROUND: "What's going on today is `group rotation' -- while the market continues to climb, different sectors take leadership turns. The correct response is to diversify as broadly as possible." (Money, June)

IRA INFO: "If you inherit an IRA from your spouse, you can claim that IRA as your own and name your own beneficiaries. However, if you inherit an IRA from someone else, you'll be taxed immediately if you change it to your name. You're better off to insist that the IRA be kept in the name of the previous owner. See your tax person for details." (Moneypaper)

WALL ST. WATCH: "Based on price-earnings ratios and other measurements, the Dow belongs at 36,000 right now. It should be there within five years." (Jim Glassman, American Enterprise Institute, on Moneyweek, CNN)

"I am scared, but fully invested. We are hugging our benchmarks because the tremendous market excesses frighten us. There are literally no cheap markets in the world right now." (Barton Biggs, chairman, Morgan Stanley Asset Management)

"We're at the cusp of a major transition from bloated large caps to beneficiaries of stronger global growth." (Personal Finance)

Pub Date: 5/19/99

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