FWIW:
Intel, Applied Materials Recommended by Guest on PBS' Rukeyser
By Samantha Zee
Owings Mills, Maryland, May 12 (Bloomberg) -- Intel Corp.,
and Applied Materials Inc. shares may climb as demand for computer
chips grows, said a guest on ``Wall Street Week With Louis
Rukeyser.''
Intel, in its first-quarter earnings report last month, said
chip supply would remain tight at least through the second
quarter. The world's largest maker of computer chips said it could
have sold more if it had been able to make them.
Santa Clara, California-based Intel fell 9/16 today to 115
and Applied Materials, the No. 1 semiconductor-equipment maker,
dropped 13/16 to 84 7/16.
``There are going to be growth areas in the stock market and
the chipmakers are growth stocks,'' said John Kim, president of
Aeltus Investment Management, who expects the Federal Reserve will
raise interest rates next week by a half-point in a bid to slow
the U.S. economy.
``People will still put money in stocks, although the Nasdaq
will be sluggish,'' Kim said.
Investors seeking the ``broadest exposure to equities''
should consider buying index stocks, said another guest, Patricia
Dunn, chairwoman of Barclays Global Investors Ltd.
``Instead of choosing a stock and trying to guess if it will
outperform others in a sector, you can buy the entire sector,''
she said.
Barclays Global, which oversees more than $800 billion,
making it the world's largest manager of funds for institutional
customers, will introduce 42 index funds through July that will
trade on the American Stock Exchange.
Dunn recommends that individuals put half their investments
in an index fund. The index funds that Barclays Global is
introducing will be cheaper to invest in than conventional index
funds and be more liquid, Dunn said. |
