`Strong rally' seen when panic ends, courage sets in

The Ticker

September 28, 2001|By JULIUS WESTHEIMER

"Crises like these are buying opportunities, but they don't come the moment trading reopens," says Tom McClellan's Market Report.

"Sellers have to exhaust their panic while buyers build enough courage to come back in. We've reached the bottom of this sell-off, and we'll have a strong rally," the industry newsletter adds.

"Decisions made under panic conditions are usually regretted," says Wright Investors' Service. "We will now become more conservative. This is not the time to panic, but to judge quietly as facts are known."

"There is strong support for a bull market," states Hays Market Focus. "Even if this bear market reflashes again in the wake of the terrorist attacks, it doesn't have one leg to stand on. Don't panic. Use any volatility to buy stocks."

Adrian Day's Global Analysis says, "Remember that the market was already weak and in a primary bear market, so the potential for a sustained rally is exceptionally small."

"Today's uncertainties are so great that investors should buy tax-free or Treasury bonds, depending on their tax bracket. Be 100 percent in bonds, zero in stocks." (Seth Glickenhaus, financial advisor.)

"What holds up when the market swoons? Stocks that pay good dividends." (Forbes.)

"I'm very bullish, and will switch money from bonds into stocks." (Doug Phillips, president, Trusco Asset Management.)

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