Here's what they have at the AOL NBR site:
Nightly Business Report: 01/24/97
KANGAS: My guest market monitor this week is Bob Brinker, the editor and publisher of Bob Brinker's Marketimer Letter based in Coca Beach, Florida. And Bob is also the popular host of ABC Radio's weekend program called, "Money Talk". And welcome back to Nightly Business Report. Bob.
BOB BRINKER, EDITOR AND PUBLISHER, "BOB BRINKER'S MARKETIMER LETTER": Thanks Paul. Thanks.
KANGAS: You have been one of the most aggressive bulls on Wall Street since 1960. You've been named by Marketimer Digest as number one, number two all along, mainly because you stayed with the trend. It's kind of easy. But, not for everyone to stay with a market that has been unbelievable. In your last letter, I noticed just a tinge of caution. Are you turning a little bit bearish, here?
BRINKER: We're still bullish. We're still 100 percent invested. We think the market's going significantly higher this year. We don't want our subscribers to get caught up in the euphoria, though, regarding the new era of thinking of the baby boomers saving and so the market can only go higher and higher because their all saving for their early retirement. We just want to keep them on the straight and narrow.
KANGAS: Does the fact that social security is considering investing our funds in the market worry you at all?
BRINKER: I think if they just put a small part in, it might be a good thing because it would take it out of the hands of the politicians who are currently spending it.
KANGAS: Good idea. And what about the baby boomers taking all their 401K money out of safe haven to put it in the market? Does that worry you?
BRINKER: Well, I think as a long term strategy, it works. But, I think that expectations sometimes can get out of wack. We start to hear these predictions of Dow 20,000 and that's a little worrisome. We don't believe that.
KANGAS: Well, on your last visit with us, May 31st of 1996, the Dow was at 5643. You said 6,000 not a problem. In your previous visit, you said 5,000 not a problem. Now, you're saying 7,000 not a problem.
BRINKER: Absolutely.
KANGAS: What is the basis for this tremendous bull market? What is fueling it?
BRINKER: Well, everything is going right, Paul. Basically, we have just what the doctor ordered. We have 2.5 percent growth in the real gross domestic product. We have low inflation around 3 percent. Interest rates right now I think are even higher than they'll be later this year. I expect to see long rates go down about 1/2 percent from where they are right now.
KANGAS: So, you've given us some wonderful stocks over your last two or three visits. Microsoft (MSFT) one of them. I think it was seven on the post split basis years ago. Komag (KMAG), Applied Materials (AMAT) are all way, way up there. And you'd said on the last visit in May, buy some small cap mutual funds. Your specific suggestions were Vanguard Small Cap Index Fund and Montgomery Small Cap Opportunity Fund. Those have done well.
BRINKER: Yes, Montgomery Small Cap Opportunity Fund was up 37 percent it's first year 1996. I would buy that fund, and certainly I'd buy the small cap index as well. And small cap companies can be very attractive also.
KANGAS: So you favor the small cap in the future?
BRINKER: Yes.
KANGAS: Over the large cap.
BRINKER: Especially now. The disparity between large and small cap is quite wide at this point, and I would I would look to include small caps here.
KANGAS: New suggestions?
BRINKER: Well, there's a proprietary technology company, Uniphase that has a technology that speeds the transmission of date with the use of fiberoptics. And Uniphase, I think, is going to make new highs this year. This stock was 60 a few weeks ago. It's trading at 45 now.
KANGAS: Symbol?
BRINKER: UNPH on the NASDAQ.
KANGAS: Okay. Anything else?
BRINKER: Well, last time we talked about Ultratech Stepper (UTEK). Now, here's a company that has a near monopoly on a unique piece of equipment that is used for MR thin film head manufacture. And I think Ultratech Stepper which was 25 on my last visit...
KANGAS: Now, 28 1/4.
BRINKER: It's 28 1/4. I think this stock will be in the 40s within a year.
KANGAS: Quickly now. You also gave this as the only clinker you had in that entire interview, Stanford Telecom (STII). It was at 55. It's now all the way down to 32. Out of it?
BRINKER: I would say no. I would say the stock is attractive here. It's on sale here, a very technology rich company, broadband wireless, personal satellite communications, cable modems. I think the stock's a buy.
KANGAS: The last time you were with us, Bob, you gave us a very good piece of advice. A lot of people were looking at the Japanese market, and you said no. Don't touch it. And, of course, it's way down. Attractive now?
BRINKER: No. A very dangerous game. Believe it or not, with Japan wallowing in recession, they're increasing taxes on April 1st.
KANGAS: Stay away.
BRINKER: Totally.
KANGAS: Okay. And you also said gold isn't going to do anything accept maybe go down. It did. You don't like it here either?
BRINKER: A zero waiting is very comfortable.
KANGAS: Okay. There you have it. All right. Thanks very much. You made some great calls. We hope that the new pieces of advice turn out well.
BRINKER: Thanks Paul.
KANGAS: My guest, Bob Brinker, editor and publisher of "Bob Brinker's Marketimer."
Nightly Business Report transcripts are available on-line post-broadcast. The program is transcribed by FDCH. Updates may be posted at a later date.
The views of our guests and commentators are their own and do not necessarily represent the views of Community Television Foundation of South Florida, Inc., Nightly Business Report, or WPBT. Information presented on Nightly Business Report is not and should not be considered as investment advice.
(c) 1997 Community Television Foundation of South Florida, Inc.
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Transmitted: 1/27/97 9:09 PM (N0124975) |
