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Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: MythMan who wrote (62141)	9/15/1999 8:14:00 PM
From: Lucretius	Respond to of 86076

that's why i am buying calls -g-

To: MythMan who wrote (62141)	9/16/1999 12:59:00 AM
From: Lucretius	Read Replies (1) \| Respond to of 86076

LOL.. a must read..... "In spite of continually benign inflation data all summer, there's still probably some concern the FOMC is going to monkey again with monetary policy on Oct. 5," said Alan Hoffman, senior portfolio manager at Value Line. "Economic data we've seen have been consistently excellent. Still, the stock market attained a high valuation back in April and has been oscillating in a 1,000-point range since. We think that's going to be the market's temperature for the rest of 1999." Hoffman put the probability of a Fed hike in October at 50/50 and noted some "inventory stocking" because of Y2k concerns that may push third-quarter GDP above expectations. If that comes to fruition, it might entice the Fed to take pre-emptive action in October or adopt a tightening bias, he said. Notwithstanding the uncertainty, Value Line remains fully invested. Value Line is long and recommends tech giants such as EMC (EMC:NYSE), Cisco (CSCO:Nasdaq), Microsoft, Intel, Lucent (LU:NYSE) and ADC Telecommunications (ADCT:Nasdaq). "Given the fact valuations are pretty high, they would be vulnerable to profit-taking in the event of a major crisis," Hoffman said. "But we don't see a major crisis coming down the pike." Also, tech favorites have "been hit three or four times in the last few years and always come back. There's an investment thesis that supports high valuations." At the same time, "it's a good environment to pick up things being punished unjustly," the fund manager said. In that light, he recommends (and is long) retailers such as Best Buy (BBY:NYSE) and Dayton Hudson (DH:NYSE). Similarly, he recommended two other recently out-of-favor groups for long-term investors. In financial services, he favors Fifth Third Bancorp (FITB:Nasdaq) and Zions Bancorp (ZION:Nasdaq), which recently agreed to merge with First Security (FSCO:Nasdaq). In pharmaceuticals, he likes Medtronic (MDT:NYSE), Amgen (AMGN:Nasdaq) and the "full suite" of big drugmakers.