LOCK
State Street's Jeffrey Davis Recommends Telecom on 'Rukeyser'
Owings Mills, Maryland, May 21 (Bloomberg) -- Telecommunications stocks like Germany's Mannesmann AG were among the investments recommended by Jeffrey Davis, chief investment strategist at State Street Global Advisors, on Public Broadcasting System's ''Wall Street Week With Louis Rukeyser.''
Davis said Mannesmann, an engineering company that runs Germany's biggest mobile-phone network, could benefit from Olivetti SpA's bid for Telecom Italia SpA.
''They've made an aggressive push into telecommunications and will continue to dominate,'' Davis said.
He said foreign investments also present opportunities because of the buying power of the strong U.S. dollar. In the U.S., he said real estate investment trusts have become increasingly attractive, although he declined to name any individual trusts as potential buys.
Davis said he's become more conservative about investing with the resignation of U.S. Treasury Secretary Robert Rubin.
''We've had a very good run and I think Rubin's resignation may be the end of a phase,'' Davis said. ''The next phase may be more difficult.''
Among the guests, PaineWebber investment strategist Mary Farrell said the market remains bullish and ''will see new highs.'' She recommended technology stocks like Sun Microsystems Inc., International Business Machines Corp., Microsoft Corp. and Time Warner Inc., which she said could be viewed as a tech stock because of its cable holdings.
She also said retailers Gap Inc. and Bed Bath & Beyond Inc. could benefit from increases in consumer spending.
Davis, however, countered that he's ''nervous'' about consumer goods.
''We may be wrong for a while, but I don't think consumer cyclicals are worth the ride because of their vulnerability'' to interest-rate and other economic changes.
Tom Gallagher, an analyst for International Strategy and Investment Group, said proposed legislation that could require special locks on firearms had pushed shares of Saf T Lok Inc. soaring in recent weeks. Its shares have nearly quadrupled since April 1.
Harvey Eisen, managing director of Bedford Oak Partners, said small- and mid-cap stocks will be among the better investments in the current market.
May/21/1999 23:26
For more stories from Bloomberg News, click here.
(C) Copyright 1999 Bloomberg L.P. |
