9 stocks that may benefit from a 5th Fed rate cut

The Ticker

May 11, 2001|By JULIUS WESTHEIMER

NOBODY KNOWS whether the Federal Reserve Board will reduce interest rates when its Open Market Committee meets Tuesday.

However, Standard & Poor's Outlook says, "We thought it would be helpful if we went back to see how various industries performed 12 months after a fourth rate cut in the past.

"The industries that were among the best performers included banks, building materials, consumer finance, home building, savings and loans, trucks and waste management."

The Outlook says these stocks will benefit from a rate cut: AmSouth Bancorporation, Masco Corp., Household International Inc., Dime Bancorp Inc., Charter One Financial Inc., PPG Industries Inc., Clayton Homes Inc., CSX Corp. and Cummins Engine Co.

DID YOU KNOW? "Usually, IRA withdrawals before 59 1/2 are hit with a 10 percent penalty, plus income tax," says Moneypaper. "But there's a specific exemption for `substantially equal periodic payments.' If you take your money out on a regular schedule for at least five years, or until you're 59 1/2 , whichever comes later, you won't owe the penalty. Once you start this program, however, you can't stop."

WALL STREET WATCH: "Mid-cap stocks don't get much attention these days. That's unfortunate, because in a market downturn they tend to do better than other stocks, and pose less risk, too." (Bloomberg's Personal Finance)

"The economy and markets are on far sounder footing today than in 1982 or 1974, when inflation, interest rates and unemployment were rising almost out of control." (Kiplinger's Personal Finance)

"We've been going down I-95 at 100 miles an hour, and now we've slowed down to 55. It seems like we're standing still, but in fact we're moving along OK." (Delos Smith, senior economist, Conference Board)

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