Realizing when to sell can save you from a loss

The Ticker

June 23, 1999|By JULIUS WESTTHEIMER

How long should you hold on to a stock? " `Be patient, think long term, because they always come back' is one of the most dangerous things people say about a stock," says Peter Lynch, mutual fund investor. "Sometimes you've got to know when to fold 'em. If you invested $10,000 in Joseph Schlitz Brewing Co. in the early 1970s, and patiently reinvested all your dividends, your $10,000 investment would now be worth only $376."

Looking for income? These issues are touted in Standard & Poor's midyear forecast as superior for long-term return: AT&T Corp., Bristol-Myers Squibb Co., First Union Corp., Penney (J. C.) Inc., Texaco Inc. and Texas Utilities Co.

"Enhanced index funds are designed to outperform the S&P 500 index," says William E. Donoghue, financial adviser. "Instead of investing in the 500 stocks that comprise the S&P 500, `enhanced index funds' invest a small portion in options and futures with the objective of earning more than the index."

NOTES: "The Internet mania is unraveling right now. Greedy individuals bought lots of hot Internet shares early this year on margin. Most have been disastrous." (Barron's)

Pub Date: 6/23/99

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