High-tech run-up could be a late-stage bubble

The Ticker

February 25, 2000|By Julius Westheimer

Are you loading up on high-technology stocks? "High-techs are in a late-stage bubble," says money manager Kenneth Fisher. "I watched a bubble like this 20 years ago in energy stocks, and I saw it pop. The energy sector was down 23 percent in a year. Parallels between energy stocks in 1980 and high-techs today are eerie. Lighten your high-tech holdings, keeping only the biggest and most solid companies."

These stocks are listed under "Large-Cap Bargains" in Black Enterprise, March: American Express Co., Delphi Automotive Systems Corp., Kmart Corp., Pharmacia & Upjohn Inc. and Tricon Global Restaurants Inc.

"More firms will issue `tracking stocks,' equities tied to value of one division of a company. Big corporations see this as a way of showcasing a standout subsidiary, but there are pitfalls: Fate of a tracking stock remains tied to the parent company; investors could miss merger gains; and conflicts could arise between the tracking-stock subsidiary and the parent company." (Kiplinger Letter)

WALL ST. WATCH: "Maybe the -- 25 stocks now leading the market -- will correct individually. But if they all go down at the same time, it'll make Black Monday look like Thanksgiving." (Martin Sosnoff, author of "Silent Investor, Silent Loser")

"Dow Jones stocks have become oversold. Wise investors should consider buying them." (Myron Kandel, CNN financial editor)

"I favor buying mutual funds. Fund managers with strong research receive information earlier than does the individual investor." (Alexandra Armstrong, financial planner)

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