High-technology stocks vulnerable to inflation

The Ticker

July 21, 1999|By Julius Westheimer

ARE YOU LOADED with high-technology stocks?

"Be careful of high-techs," warns Personal Finance. "If inflation picks up Wall Street's soft spot will be overvalued Internet stocks. Many tech stocks will watch their inflated valuations collapse.

"And guess what? We're selling one of our biggest winners -- Microsoft. It has three strikes against it -- growing competition, a government lawsuit and its lofty valuation."

WALL STREET WATCH: "I'm raising cash. Bargains were abundant last summer, but now they're scarce. There's no way the market can match the gains of the last five years." (Michael Sivy in Money.)

"The time to buy stocks is when everyone is selling them at distress prices. That's not the case today." (Sir John Templeton.)

"International investing isn't worth the risk. You can earn top-notch returns at home, making the risk from currency swings and upheaval abroad unnecessary." (John Bogle, chairman, Vanguard Funds.)

CAREER CORNER: "Are you a person nearing retirement who hasn't saved much money?" asks Financial Perspectives. "Consider retiring later. The later you retire the fewer years you must save for and the more time you have to earn retirement income. And postponing Social Security means larger payments when you do retire."

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