June 20, 2001|By JULIUS WESTHEIMER
"THE AVERAGE return on IPO stocks during their first five years of trading is about four percent lower than the average return for companies that have been around longer," says Jay Ritter, professor of finance, University of Florida. "Self-defense: If you want to buy stock in a company that has just made an IPO, wait several months, then evaluate the company as you would more established firms."
Consider selling a stock when you realize you have made a mistake and it is clear you bought the stock for the wrong reason. Also sell when your stock underperforms other stocks in the same industry, and sell whenever a takeover comes along; don't wait for the counterbid that may never come. Never fall in love with your investments." (Moneypaper)
WALL STREET WATCH: "The stock market is almost guaranteed to be a lot higher in the months ahead, thanks to tumbling interest rates and exploding amounts of cash. Both are extremely bullish," (Cabot Market Letter)
"During bear markets, stocks plummet for an average of 12.1 months. Furthermore, investors have to hang on for 31.1 months before their portfolios recover." (Ned Davis Research)
"The stock averages have staved off a significant bout of profit-taking. ... This is an indication that better growth of corporate profits and the economy is not far off. A pause in the market rally might even be healthy." (Wright Investors' Service)
We feel confident that, after a minor corrective phase, we will experience new highs in the Dow and in many other indices." (Crawford Perspectives)
"The news is not favorable and economic numbers and earnings will deteriorate for months to come. Any unexpected negative event could drive stock prices down very rapidly." (Alan Newman's Crosscurrents.)
