Biggs predicts a correction
Morgan Stanley Asset Mgt. chair says
market will finish year down 5-10%
February 3, 1999: 8:02 p.m. ET
NEW YORK (CNNfn) - A noted market strategist
said Wednesday he expects a significant correction on
Wall Street at some point in 1999.
Barton Biggs, chairman of Morgan Stanley Asset
Management, told the Moneyline News Hour with Lou
Dobbs that history indicates the stock market will
likely experience a 20- to 30-percent correction
sometime this year.
"We've lived in a paradise for a number of years,"
Biggs said. "In this century, we've had at least a
20-percent correction every three years. We had a
20-percent correction last year, but that was after
about seven years."
Biggs also predicted that the market will likely finish
the year down between 5 and 10 percent, though he
wouldn't speculate on what factors would initiate the
decline.
Biggs also counseled investors in how to handle a
future market downturn.
"If you're a long-term taxable investor, you should
ride it out," he said. "If you're not, you should take
some cash."
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