Think big en route to a big portfolio

The Ticker

August 25, 1999|By Julius Westheimer

SHOULD YOU invest in large- or small- capitalization stocks?

"Investors will do best buying large-cap stocks," says successful adviser Laszlo Birinyi. "My favorite areas are financial services, manufacturing, retail, technology and utilities."

Birinyi's choices include America Online Inc., BellSouth Corp., Deere & Co., the Gap Inc., General Dynamics Corp., Goodyear Tire & Rubber Co., Texas Utilities Co. and United Technologies Corp.

TAX SAVER: "You can pay for anyone's education without owing gift taxes if payments are made directly to the school and are used for tuition and books, not room and board. This is in addition to $10,000 a year you can give to any number of people free of gift taxes," says Fortune magazine.

WALL STREET WATCH: "The Internet stocks are only the stock market writ small. They are simply the bubble on the bubble." (Smithers & Co. newsletter)

"This booming economy is fueled by the largest debt explosion in history, resulting in a `bubble' economy, moving hand-in-hand with the stock market bubble." (Aden Forecast)

"The market correction isn't over yet because investors are much too complacent. Major market bottoms occur when investors suffer real panic. Today we don't see signs that investors are worried." (Cabot Market Letter)

"It's time to buy the drug stocks. The best ones -- Merck & Co., Pfizer Inc., etc. -- will bounce back from the recent dip." (Money magazine)

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