Don't expect a stock to drop to your buying price

The Ticker

June 30, 1999|By Julius Westheimer

ARE YOU waiting for a sharp market correction before you invest? Don't, according to financial adviser David Dreman. "Don't wait for a severe setback to find good `value stock' buys. Look for stocks with relatively low price-earnings ratios, above-average dividend yield and low price-to-book value ratios," he advises.

WORKING LONGER? "Too many Americans feel retirement will be a breeze. Most baby boomers want to retire by age 60, haven't saved much, doubt they'll get many Social Security benefits -- but expect to live very well in retirement. They'll be sorely disappointed," warns investment banker Peter Peterson.

WALL STREET WATCH: "To make good use of stock `tips,' don't buy a stock that has had a recent sharp run-up. Otherwise, the story may already be discounted and confirmation or denial in the press could trigger a sharp sell-off." (1999 Stock Trader's Almanac)

"While Wall Street continues to cheer at `impressive earnings-per-share growth' as justification for historically high valuations, the dismal reality is a lousy profit trend." (Richenbacher Letter)

"It is the current thinking, especially of those young online traders, that best identifies itself with the end of the long bull market and the current onset of a bear market." (Granville Market Letter)

"Most companies will report terrific earnings in the next few weeks, and that has to be a positive for stocks." (Yankee Prognostics)

Pub Date: 6/30/99

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