Asset allocation is critical in building wealth long term

The Ticker

September 29, 1999|By Julius Westheimer

IN THIS volatile market, are you worried about your 40l(k) and other investments?

"Every major study shows that asset allocation -- how your money is divided among stocks, bonds and money funds -- accounts for 90 percent of your long-term investment success," says Ted Benna, president of the 401(k) Association.

"In the weeks ahead, re-examine your mix. Aggressive investors should have 90 percent of their money in stocks, moderate investors 50 percent and conservative investors 20 percent. The balance should go into bonds, bond funds and money market funds."

WALL STREET WATCH: Dun & Bradstreet Corp., Comair Holdings Corp., Gucci Group and 3Com Corp. are listed under "Rising Stars" in the latest S&P Outlook. Carnival Corp., Raytheon Co., PacifiCare Health Systems Inc. and Federal-Mogul Corp. are rated as "Falling Stars."

"At some point, this market will suffer more severe corrections. We advise extreme caution." (Investors Intelligence)

"Some analysts argue stocks will remain strong while the economy booms, but they overlook the historical fact that stocks generally turn lower six months before an economic downturn." (Lowry's NYSE Market Analysis in Barron's)

"The sheer proliferation of 1929 stock market parallels tells us the last supports in this market are about to give way." (Granville Letter)

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