High P/Es safer than you think

The Ticker

July 16, 1999|By Julius Westheimer

NOTES AND QUOTES about your money:

"The past 127 years show that very high price-earnings markets have been much less risky than lower P/E markets. Higher P/E markets offer better returns and fewer declines." (Kenneth Fisher in Forbes)

WOMEN WIN: "When it comes to investing, women are more `money-smart' than men," says Terrance Odean, finance professor, University of California. "Why the edge? Women stick with stocks they buy, switching in and out less than men. Less frequent trading means higher returns." (Glamour, August)

FED WATCH: "Don't rule out another rate increase by the Fed this year. With labor tight, Fed still worries about inflation getting out of hand. Prime rate, now 8 percent, will move up to 8.25 percent to 8.5 percent by the early months of 2000." (Kiplinger Washington Letter)

MONEY-SAVER: "Be sure to shop for car insurance. Rates are dropping because cars are now safer, auto thefts down and drunk-driving laws stronger. Rates dropped 3 percent last year and should fall 4 percent this year." (Consumer Federation of America)

WALL STREET WATCH: "Long-sleeping utilities are waking up to rapid growth. Buy them now for explosive gains as well as income." (Personal Finance)

"Rocketing bond yields are no problem for stocks. The Fed's recent action removed much uncertainty. Major indices will move higher well into August." (Timer Digest)

"The history of markets boils down to this: When the rubber band gets stretched too far, it tends to snap back the other way." (McAvity's Deliberations)

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