Brand-name consumer stocks not always on top

The Ticker

June 07, 2000|By Julius Westheimer

Do you buy stocks of companies whose products you use regularly? Proceed with caution.

"Don't believe that brand-name companies' stocks - Coca-Cola Co., Campbell Soup Co., Kellogg Co., Gillette Co., Hershey Foods Corp. etc. - are long-term winners or bear market safe havens," says Gary Shilling, financial advisor. "Although their products retain a special aura, consumer brands which once were magnets for sales dollars have lost their storied allure."

CAREER CORNER: Don't rush to become a stock broker. Under "What Jobs Will Disappear in 2000," Time, May 29, tops the list with stock brokers, explaining, "The Internet will eradicate middlemen by the millions." Other vanishing careers include car dealers, insurance agents, teachers, truckers and CEOs ("A global team of quick-thinking experts will carry companies through the Internet age.")

CAUTION FLAG: "With the Dow and S&P 500 near record-high P/Es and record-low dividends, caution is the watchword. Investors are wildly overoptimistic. They see nothing but `blue skies' as they did in the late 1920s. Cash and short-term bonds are excellent havens with an impending storm on the horizon." (Bill Staton,investment advisor)

WALL STREET WATCH: "Collapse in `New Economy' stocks resembles previous plunges. Don't let it change your best success formula: Be patient, with a disciplined approach to buying growth stocks at reasonable prices." (Better Investing)

"If anyone offers to double your money, walk away. But if he or she offers to make you 20 percent, listen carefully." (Individual Investor)

"Continued robust economic growth and slowly rising inflation are an ideal environment for REIT (real estate investment trust) profits and share prices." (Personal Finance)

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