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Non-Tech : Let's Talk Blue Chips

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To: val carlson who wrote (11)4/10/1997 9:55:00 AM
From: David Luckie   of 17
 
Val,

I already own Marriot and Home Depot. I've only begun looking more deeply into food and consumer stocks, so I haven't yet chosen which stocks to buy.

Steel stocks are cyclical beasts that tend to do well towards the end of the economic cycle. BS has been beaten down, but recently made a double bottom at 7-3/4. Analysts expects steel company earnings to begin rising as early as this quarter, with BS and USX most likely leading the way. Low inflation and slow economic growth hurt those kinds of companies, but with inflation fears beginning to rise and with the economy picking up steam, it's likely that BS has seen the worst and is headed higher.
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