"Depressed stocks often benefit from the `January Effect,'" says S&P Outlook. "Since many beaten-down issues were bought at higher prices, investors often sell them before year-end to realize a tax loss. But when the new year begins and this selling pressure lifts, the shares typically rise.
"Depressed stocks for probable recovery are Avery Dennison Corp., Biogen Inc., Clear Channel Communications Inc., Dell Computer Corp., Microsoft Corp. and Wal-Mart Stores Inc."
WORDS OF WISDOM: "When investors are too confident, that's a stock market negative because they've used up all their money." (Maria Bartiromo, CNBC-TV)
"For the first time in eight years, we've got a really rough downturn. ... Don't just buy stocks because they're down." (Mario Gabelli, investment adviser)
"You may not need an Internet-focused fund. The average aggressive fund already has 41 percent of its assets in technology - including Internet stocks." (Morningstar Fund Investor)
WALL STREET WATCH: "We're not too worried by recent Nasdaq lows. This index often recovers by `turning on a dime' in an area of little chart support." (Mark Arbeter, technical analyst)
"Some investors are still buying into Wall Street's happy talk that the worst is over and it's bottom fishing time." (Kenneth Coleman's Investment Tracker)
"After the election, the economy will continue to slow, which will hit equities harder than bonds." (Ric Edelman, financial adviser)
"Alan Greenspan continues his quest to joust with inflationary dragons yet to appear. Maintain a defensive posture until the yoke of a hawkish [Fed] is removed." (Schaeffer's Daily Sentiment)
