Path to wealth may start in your neighborhood

The Ticker

June 16, 2000|By Julius Westheimer

Do you belong to an investment club? Here are strategies offered by the National Association of Investment Clubs:

"Check your neighborhood; big profits have been made on new, locally based companies. ... Don't trade often, but sell when it's time to move on to something better - but never sell without a good reason.

"Move aggressively when a stock shouts `buy!' but do your homework first. ... When a stock meets all your guidelines, play it for keeps. Many risks can be eliminated by long-term ownership."

DON'T RUSH: Do you plan to marry this year? "A December wedding could be a bad idea taxwise," says Financial Perspectives. "You could get hit by a `marriage penalty' when married couples pay more in combined taxes than they would pay as single taxpayers. Postponing the wedding into January could save enough taxes to pay for the wedding."

WALL STREET WATCH: "Five great value plays to add to your portfolio are Maytag Corp., Countrywide Credit Industries Inc., Illinois Tool Works Inc., Sherwin Williams Co. and WorldCom Inc." (Fortune magazine)

"If you're tempted to short-sell some pricey technology stocks, be cautious. Your potential profits are limited to the price of the stock while your potential loss is infinite." (Moneypaper)

"Best bargains now are small-cap stocks, which never have caught up to the large-cap indexes after years of underperformance." (Smart Money)

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